Pos Malaysia 2013 Annual Report - International Post Corporation

Transcription

Pos Malaysia Berhad
(229990-M)
(229990-M)
Level 8 Pos Malaysia Headquarters, Dayabumi Complex, 50670 Kuala Lumpur.
1 300 300 300
Supply Chain
Solutions
Communications &
Distribution Solutions
International Business
Solutions
One-Stop
Solutions
Digital
Solutions
Pos Malaysia Berhad
(229990-M)
(229990-M)
1 300 300 300
Supply Chain
Solutions
Communications &
Solutions
One-Stop
Solutions
Digital
Solutions
Looking Ahead Going Beyond
We have come a long way from being a provider of traditional postal services. As we embark on our
next phase of transformation, we are gearing towards becoming the preferred one-stop provider for
communications, financial services and supply chain solutions. Going forward, we will explore and
adapt to new business opportunities beyond the postal industry to remain relevant amidst changing
customer behaviours.
In line with our theme, Looking Ahead Going Beyond, Pos Malaysia will ride the waves of change in
search of new opportunities and ultimately, a new future for Pos Malaysia.
b
inside
this report
Cover Rationale
Vision, Mission & Core Values
Facts at a Glance
Group Financial Highlights
Business Highlights
Share Price Performance
•
•
•
•
•
•
Section 2
Chairman’s Statement
Management Report
• 10
• 16
Section 3
Accolades and Awards
List of Offerings
Corporate Events
Pos Malaysia in the News
•
•
•
•
24
26
30
40
Corporate Information
Group Structure
Board of Directors
Board of Directors Profile
Group CEO’s Profile
Leadership Team
•
•
•
•
•
•
42
44
46
48
55
56
Section 1
Section 4
LEADERSHIP
i
2
3
4
6
8
Section 5
CORPORATE
GOVERNANCE
Section 6
FINANCE
Proxy Form
Corporate Responsibility Statement
Corporate Governance Statement
Statement on Risk Management and
Internal Control (Srmic)
Director’s Responsibility Statement
Additional Compliance Information
Audit Committee Report
• 60
• 66
• 82
Director’s Report
Statements of Profit or Loss and
Other Comprehensive Income
Statements of Financial Position
• 98
• 101
Statements of Changes in Equity
Statements of Cash Flows
Notes to the Financial Statements
Top 10 Properties
Analysis of Shareholdings
Notice of 21st Annual General Meeting
•
•
•
•
•
•
• 86
• 87
• 92
• 103
105
107
110
194
198
202
Pos Malaysia Berhad
Annual Report 2013
Facts at a Glance
Vision
The trusted leader in the delivery of integrated
physical and digital solutions
Mission
Deliver excellent customer experience and
convenience in the areas of communications,
logistics, financial services and supply chain solutions
at the highest level of reliability and integrity
Core Values
•
•
•
•
•
•
•
2
Timeliness
Customer Centricity
Decorum
Excellence
Integrity
Accountability
Innovation
www.pos.com.my
Facts at a Glance
as at 31 March 2013
Number of staff
Number of PO Boxes
16,200
85,700
Number of touchpoints
Number of Street Posting Boxes
5,700
3,300
Total number of vehicles
8,200
3
Pos Malaysia Berhad
Annual Report 2013
Group Financial Highlights
Revenue
Operating Profit
EBITDA
RM Million
RM Million
RM Million
1,500
200
300
250
1,200
150
200
900
150
100
600
100
2008
2009
2010 2011/12*2012/13
246.1
269.5
2009
140.5
2008
0
2008
Profit After Tax
131.3
0
0
50
126.7
160.8
182.6
83.4
82.4
86.2
1,269.5
1,481.7
902.6
921.7
300
1,015.0
50
2009
2010 2011/12* 2012/13
Earnings Per Share
2010 2011/12* 2012/13
NTA Per Share
RM Million
Sen
Sen
200
30
2.0
25
1.5
150
20
15
100
1.0
10
4
2009
15-month performance
2010 2011/12* 2012/13
1.76
1.67
2009
1.54
1.49
28.3
25.9
12.5
14.3
(6.2)
151.3
138.8
67.1
76.7
(33.3)
2008
2008
0
0
0
*
5
1.42
0.5
50
2008
2009
2010 2011/12*2012/13
2010 2011/12 2012/13
www.pos.com.my
Revenue Breakdown FYE2013
Others
3.7%
Retail
13.8%
2012/13
Profitability
Profit Before Tax
Operating margin
EBITDA margin
Return on Assets
Return on Equity
Balance Sheet
Total Assets
Total equity attributable to equity
shareholders of the company
Current Ratio
Staff Information
No of staff
Staff cost to revenue
Revenue per employee
^ Annualised figures
*
15-month performance
2011/12
2009
99.1
8.2
13.8
6.3
8.1
109.3
9.1
14.5
5.9
9.6
2008
(RM mil’)
%
%
%
%
191.9
12.7
19.4
10.3
16.0
(RM mil’)
(RM mil’)
1,615.3
947.7
1,498.1
898.1
1,375.2
828.6
1,274.6
799.6
1,537.8
764.5
1.4
1.2
1.4
1.2
1.1
Times
No
%
(RM’000)
16,245
53.7
78.1
200.2*
12.3
18.2
10.2^
12.4^
2010
15,877
52.7
74.7^
15,618
55.1
65.0
15,780
56.8
57.2
(0.5)
9.4
13.7
6.2
(4.4)
16,125
55.7
57.2
Courier
25.4%
Mail
57.1%
Operating Expenses Breakdown FYE2013
Other operating expenses
6.4%
Depreciation of property,
plant and equipment
7.7%
Raw materials and consumables
2.3%
Maintenance and supplies
5.1%
Transportations
12.0%
Rental, communication
and utilities
5.1%
Staff Costs
61.4%
5
Pos Malaysia Berhad
Annual Report 2013
Business Highlights
MAIL BUSINESS
Achievements 2012/13
• Earned the UPU Expedited Mail Service (EMS) Gold
Certification for the second year running in 2012
• Launched PosEdaran services, encompassing
offerings namely MyDespatch, Telco@Pos and
MyDistribution, which focused on delivery of
merchandise as well as running errands for customers
MAIL BUSINESS
Business Review
•Revenue: RM724.5 million
• Revenue Contribution: 57.1%
COURIER BUSINESS
Business Review
• Introduced the Direct Mail service to further enhance
promotional efforts of customers’ products and
services
• Successfully completed Phase I of the Postal
Transformation Program for Sabah and Sarawak
(PTPSS) with the appointment of 600 Community
Postmen and 1,000 Postal Community
Representatives as well as the implementation of 10
Pos-on-Wheels (PoWs) in Sabah and Sarawak
• Ministry of Information, Communications & Culture
(Kementerian Penerangan Komunikasi & Kebudayaan
– KPKK) has approved PTPSS Phase II with
additional budget from the Government. Phase II of
PTPSS commenced in November 2012 for a period
of two years
Moving forward
RETAIL BUSINESS
Business Review
• Continue to further expand PosEdaran offerings with
MyShopping, which would allow customers to shop
from home
• To introduce Flexipack – Enhancing the features of
our Small Packet product by introducing a new
flexible prepaid pack known as Flexipack which
comes in 2 sizes
• Embark on development of a new track-on system
for PosDaftar to keep abreast with business
requirements and technological changes
6
www.pos.com.my
COURIER BUSINESS
RETAIL BUSINESS
• Awarded the “Reader’s Digest Trusted Brands Gold Award in the Airfreight/Courier
Service Category in Malaysia for 2012”
• Opened 36 ArRahnu outlets operating conveniently within Pos Malaysia
Outlets (Post Offices) to offer Islamic microcredit financing facility
• Honoured with “Frost & Sullivan Malaysia Excellent Award for Domestic Express
Service Provider of the Year for 2012”
• Collaborated with Uni Asia Life Assurance Berhad offering PosHayat and
Pos Bestari Life insurance
• Offered logistics services to corporate clients through the Integrated Fulfilment
Services (IFS) initiative
• Extended the POS24 terminals to a total of 25 locations to provide convenience
to our customers in accessing our services beyond the normal working hours
• Introduced PosLaju’s Authorised Agent, a new business model to extend the
coverage of courier services to inaccessible outlets beyond the normal working
hours
• Deployed dedicated corners for Insurance business at selected outlets
• Strategic collaboration between PosLaju and MPH Bookstores to expand the
distribution channels and provide convenience to public
• Successfully launched Hantar & Menang contest as part of PosLaju’s customer
appreciation campaign initiatives
• Provided Umrah baggage handling services
Moving forward
• To develop the integrated track & trace system
• Expanding our channel of distributions by introducing the kiosks business model
in high traffic areas to provide convenience to our customers
• To introduce portable counter at PosLaju Branch to serve the customers and reduce
the congestion during peak hours
• Sales and service team employed to boost sales performance
• Full deployment of 24 PoWs at new rural areas to reach out to the rural
communities with 10 units in Sabah and Sarawak
• Extended postal merchandising via PosShoppe to another 85 outlets, bringing
the total to 185 outlets
• Awards received:
1st and 2nd placing for the best zakat counter in 2012 by Pusat Pungutan
Zakat Majlis Agama Islam Wilayah Persekutuan (PPZ MAIWP) for Post
Office KLCC and Gombak, respectively
Special award for PoWs Wilayah Persekutuan by PPZ MAIWP
Super Platinum Award from Zurich Insurance Malaysia Berhad
Top Financial Institution – Top Agencies Financial Categories from RHB
Insurance Berhad
Franchise Appreciation Award from Allianz General Insurance Company
(M) Berhad
Moving forward
• Upgrade our selected outlets to the new retail design
• To expand International Express Money Order (IEMO) services to other
countries such as Vietnam, India, Bangladesh, Cambodia and Laos
• Collaborate with Takaful Principal to promote Family Takaful Products
• Expand ArRahnu outlets to a total of 100 by end of financial year
• Expand PoWs services to rural communities in Sabah and Sarawak via
additional 6 new units
7
Pos Malaysia Berhad
Annual Report 2013
Share Price Performance
Share Price
150,000
4.5
Volume (’000)
4.0
130,000
3.5
110,000
3.0
90,000
2.5
70,000
2.0
50,000
1.5
30,000
1.0
10,000
0.5
(10,000)
2
r1
Ap
2
r1
Ap
2
r1
Ap
ay
M
12
n
Ju
12
n
Ju
12
2
l1
Ju
2
l1
Ju
2
g1
Au
2
g1
Au
p
Se
12
p
Se
12
2
t1
Oc
2
t1
Oc
2
t1
Oc
2
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No
2
v1
No
2
c1
De
2
c1
De
n
Ja
13
n
Ja
13
b
Fe
13
2012
Total Monthly Volume (’000)
Monthly High (RM)
Monthly Low (RM)
Monthly End Closing (RM)
8
b
Fe
13
ar
13
M
ar
13 0.0
M
2013
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
93,039
2.75
2.67
2.73
121,594
2.76
2.58
2.71
173,485
2.91
2.60
2.82
140,354
2.92
2.78
2.91
546,353
3.34
2.87
3.19
275,820
3.25
3.04
3.11
277,862
3.15
3.00
3.02
261,707
3.18
2.93
3.18
288,003
3.49
3.12
3.48
451,821
3.73
3.30
3.55
202,443
3.81
3.41
3.78
246,371
4.25
3.74
4.24
www.pos.com.my
9
Pos Malaysia Berhad
Annual Report 2013
Facts at a Glance
Chairman’s Statement
Dear Valued Shareholders,
On behalf of the Board of Directors, it gives
me great pleasure to present the Annual
Report and Audited Financial Statements of
Pos Malaysia Berhad (“Pos Malaysia” or “the
Company”) and its subsidiaries (“Pos Malaysia
Group” or “the Group”) for the Financial Year
Ended 31 March 2013.
10
www.pos.com.my
challenging MACRO ENVIRONMENT
During the year, global economic prospects improved although the path towards
recovery in advanced economies appears to remain constrained by fiscal and structural
concerns. Significantly, emerging economies, including Malaysia, have remained
resilient and continued to perform favourably. Specifically, domestic economic growth
as measured by Gross Domestic Product (GDP) improved to 5.6% in 2012 compared
to 5.3% in the preceding year. The underlying domestic trend was not unexpected and
reflects a progressive restructuring of the economy over the last decade. This structural
realignment seems to have afforded Malaysia greater policy flexibility, which has proved
fundamental in an increasingly uncertain macro landscape.
A DYNAMIC YEAR
While the global macro landscape was generally sluggish, the postal industry in particular
has been increasingly challenged by widespread adoption of digital technologies. Despite
the latter causing shifts in demand for traditional postal services, we registered a
resilient performance in the year under review. This was largely due to Pos Malaysia’s
preparedness to ride on the digital wave and institutionalise positive change. The Group
has been Looking Ahead at various transformation initiatives with the broad objective of
maintaining our edge. This has entailed Going Beyond traditional mail offerings to
diversify our income stream whilst enhancing the Group’s profit margins.
Pos Malaysia closed the year with record revenue of RM1.27 billion, equivalent to an
increase of 7.8% against the preceding year, driven primarily by our courier and retail
businesses. Double-digit growth posted by our courier outfit was underpinned by strong
on-demand and contract businesses as well as an expanding parcel business in line with
the exponential growth of online businesses. Our retail arm, meanwhile, recorded higher
revenue per transaction consistent with our strategy of moving up the value chain by
venturing into the more lucrative insurance business and financial services, amongst
others.
Evidence that our revenue diversification strategy is taking effect can be seen in the
shift in our revenue profile, with mail revenue contribution reducing to 57.1% against
61.7% the preceding year. In going beyond traditional mail services, we have also seized
on the potential of creating synergies with the DRB-HICOM Group of companies. In
many instances, our suite of offerings such as Corporate Mail Management, courier,
fulfilment and logistics services have been able to enhance the operations of other
companies within the larger group.
These positive developments, coupled with greater cost savings and operational
efficiencies brought about by our transformation, led to a Profit Before Tax of
RM191.9 million and Profit After Tax of RM151.3 million, representing an annual
increase of 26.6% and 50.4%, respectively.
NEW VISION, MISSION AND core values unveiled
The changes taking place at Pos Malaysia are unfolding at a very fundamental level,
redefining what we are as a Group, what we do, and how we do it as reflected in the
new Vision and Mission statements unveiled in the year under review. Our Vision, to
be ‘The trusted leader in the delivery of integrated physical and digital solutions’,
resonates with our aspiration to stay relevant in a fluid marketplace while reflecting
our digital agenda. We believe we have strong capabilities to become a leader in
integrating the physical and digital worlds, leveraging on our wide range of offerings.
Correspondingly, a renewed Mission statement has been introduced where we pledge to
‘Deliver excellent customer experience and convenience in the areas of communications,
logistics, financial services and supply chain solutions with the highest level of reliability
and integrity.’ This is backed by our Core Values; Timeliness, Customer Centricity,
Decorum, Excellence, Integrity, Accountability and Innovation. The Vision, and Mission
statements together with the Core Values are aimed at steering Pos Malaysia’s strategy
towards charting growth in the exciting new phase the Group has entered.
11
Pos Malaysia Berhad
Annual Report 2013
Chairman’s Statement (cont’d.)
TRANSFORMATION IS SCORE
Pos Malaysia’s transformation exercise is underpinned by five strategic thrusts derived from the acronym SCORE which stands for Solutions driven by technologies, Customer
centricity, Operational efficiency, Revenue and geographic diversification opportunities, and Effective enablers’ capabilities. The primary deliverable of SCORE encompasses a
structural realignment of our business portfolios into five key business clusters, namely Communications and Distribution Solutions (CDS), One-Stop Solutions (OSS), Supply Chain
Solutions (SCS), Digital Solutions (DS) and International Business Solutions (IBS).
This realignment reflects a change in mindset to support a paradigm shift towards customer-driven solutions, as opposed to a predominantly product-centric culture previously.
Our renewed focus enables the Company to open up new possibilities and seize opportunities in growth areas within the domestic as well as international markets; reinvent our
business models to enhance value creation; and challenge the norm to meet the wants and needs of an increasingly discerning customer profile.
Communications and Distribution
Solutions
•Mail
• Direct Mail
•Distribution
One Stop
Solutions
•Retail
•Payments
•Financial
•Ar-Rahnu
•Philately
Supply Chain
Solutions
•Courier
•Express
•Parcel
• Integrated Logistics
The ultimate objective of SCORE is to create an efficient and effective foundation that
provides Pos Malaysia with both the strength and stability to support revenue
diversification, in line with best practices of other successful postal organisations. In
pursuing this Transformation Plan, we are leveraging on both the inherent strengths of
Pos Malaysia – derived from our extensive network and workforce as well as the
potential synergies that can be created with the DRB-HICOM Group of companies, its
partners and stakeholders.
Already, significant synergies have been created; and Pos Malaysia is now a Lead Logistics
Provider for the automotive companies within the Group. We expect to reap further
opportunities within the Group from traditional postal offerings to more recently engaged
offerings such as logistics, warehousing, fulfilment and record management services.
12
Digital
Solutions
• Data and Document
Processing
• Certification Authority
•E-Services
• Total Office Solutions
Solutions
• International Express and
Courier
• International Packet and Parcel
• International Mail
A portfolio of Strategic Initiatives (“SIs”) has been identified to bring about
transformational changes to drive Pos Malaysia’s performance, and several projects
under the SIs were launched during the year. These include ArRahnu@POS, a Shariahcompliant gold-backed micro financing scheme; PosAssurance, which saw the launch
of two life insurance products, PosHayat and Pos Bestari; and Direct Mail, an
alternative and creative avenue for customers to advertise their businesses, products
and services through the distribution of mail or samples to targeted audiences or areas
in a more effective manner.
www.pos.com.my
A CULTURE OF EFFICIENCY and EFFECTIVENESS
To support our blueprint for change, we have set up a dedicated SCORE Office with
full-time personnel tasked with ensuring the success of our transformation journey.
This office monitors the progress made on our transformation scorecard and reviews
our plans on a regular basis to ensure they are in line with the prevailing economic
and financial landscape. It also keeps employees updated on what we have achieved,
and the areas in which we need to improve.
Key to the successful implementation of our plans are efficiency and effectiveness,
which have led to a complete IT overhaul of our front-end system, greater automation
of processes and procedures, and the constant search for more innovative ways of
doing things. Our transformation is also driven by focus on QCD, or quality, cost and
delivery. By this, we ensure that our products and services are always of the highest
quality; that we value-engineer our processes to bring about cost savings; and that
there is never any compromise on excellence in our service delivery be it with
customers, fellow colleagues or any other group of stakeholders. At the same time, Pos
Malaysia has also adopted the HICOM Management System (HMS), a practice
established by DRB-HICOM Berhad, which distils best practices in terms of management,
standard operating procedures and other processes essential to the smooth and
efficient functioning of an organisation.
EMPOWERING OUR PEOPLE
As we strive to achieve our Vision and Mission, it is critical for all our workforce to
move in tandem towards attaining our goals. There is therefore much emphasis on
employee engagement to ensure everyone is inspired by the same aspirations. More
than 100 town hall sessions have been held at which members of the Management
shared the Company’s direction, core values and targets with all employees. To further
cement awareness and understanding, we have engaged with our employees through
various print and electronic communication channels, including the publication of
literature in illustrated format.
Meanwhile, we believe in empowering our employees via continuous training and
development to equip them with the prerequisites to perform optimally. We have also
embarked on a talent spotting initiative, under which those with leadership potential
are placed on clearly defined career paths and given the opportunity to take on senior
roles within the Group. To instil a culture of performance, a performance-linked reward
system has been adopted which also serves as the foundation for career advancement.
Sustainable CORPORATE RESPONSIBILITY
At Pos Malaysia, we are committed to the highest levels of corporate governance and
continually update our policies and principles according to the latest guidelines and
best practices. Corporate governance forms an integral part of our more wide-ranging
commitment to corporate responsibility which we believe is critical for our sustainability.
While we are diversifying our business and aim to become a one-stop logistics
solutions provider, we will continue to prioritise our original function, namely to provide
quality postal services to all Malaysians. In this regard, we work closely with the
relevant government authorities on initiatives such as the Postal Transformation
Programme for Sabah and Sarawak (PTPSS) which has now entered its second phase.
At the international level, we keep updated of developments in the postal industry,
and contribute towards enhanced international services. During the year under review,
we were elected to the Postal Operations Council (“POC”) of the Universal Postal
Union and now look forward to working with members from 39 other countries towards
modernisation of postal services.
13
Pos Malaysia Berhad
Annual Report 2013
Chairman’s Statement (cont’d.)
Awards and Accolades
Despite the many challenges encountered over the year, we continued to deliver our promise to our valued customers. Pos Malaysia managed to bag the Universal Postal Union
(“UPU”) Expedited Mail Service (“EMS”) Gold Certification for the second year running. At the same time, our post offices at KLCC and Gombak were placed first and second
by Pungutan Zakat Majlis Agama Islam Wilayah Persekutuan (“PPZ MAIWP”) for having the Best Zakat counters. In addition, Pos-on-Wheels in Wilayah Persekutuan won a special
award by PPZ MAIWP. Our contributions to the insurance business have also been recognised, and we received several awards from our partners, including:
• The Super Platinum Award by Zurich Insurance Malaysia,
• Top Financial Institution, Top Agencies Final Categories by RHB Insurance Berhad; and,
• Franchise Appreciation Award by Allianz General Insurance Company.
In upholding its standards and commitment, PosLaju continued to be recognised for its excellent performance and for the seventh consecutive year by winning the Reader’s
Digest Trusted Brands Gold Award in the Airfreight/Courier Service Category in Malaysia for 2012. It was also the recipient of Frost & Sullivan Malaysia Excellent Award for
Domestic Express Service Provider of the Year for 2012.
DIVIDENDS
PROSPECTS
The Board of Directors would like to propose a final dividend of 9.5 sen per ordinary
share less income tax at 25% totalling RM38.3 million, subject to our shareholders’
approval at the forthcoming Annual General Meeting. This is in addition to the earlier
interim dividend of 8.0 sen per ordinary share less income tax at 25% paid on
31 December 2012, amounting to RM32.2 million. The total dividend payout of
RM70.5 million on the back of robust net cash generated from operating activities of
RM208.7 million translates into a dividend payout of 46.6% of Pos Malaysia’s net
Profit After Tax, consistent with our policy to provide sustainable returns to our
shareholders.
Postal services industry throughout the world is facing pressure from widespread adoption
of electronic communication. However, we see the challenges posed by a rapidly digitalising
landscape as opportunities for change, and are adapting to the new norm with strategic
business diversification plans that will take Pos Malaysia to new heights.
14
Still, I believe Pos Malaysia is ahead of the game with our Transformation Plan, our Vision,
Mission and values. Not only have we mapped out our transformation journey for the next
five years, we have also put in place milestone checkpoints to ensure we do not get
derailed along the way. Just one year into SCORE, we have already witnessed many
positive changes in the Company both operationally and financially. Yet this is just the
beginning. There are many more far-reaching initiatives in the pipeline, which will be rolled
out in the near future. Given these fundamental changes, we are optimistic about the
financial year 2014 and beyond, and look forward to presenting sustainable performance
to our stakeholders.
www.pos.com.my
BOARD CHANGES
The Board of Directors and Management of Pos Malaysia would like to extend a warm
welcome to four new Board members. Dato’ Sri Che Khalib bin Mohamad Noh was
appointed to the Board on 17 August 2012, and brings with him many years of
experience in the corporate world. Encik Abdul Hamid bin Sh. Mohamed, who was
appointed to the Board on 1 March 2013, has vast knowledge and experience in the
financial and banking services sector. Datuk Mohamed Razeek bin Md Hussain Maricar,
who was appointed on 24 April 2013, has extensive experience in the property sector.
Datuk Puteh Rukiah binti Abd. Majid has held various senior positions in the Ministry
of Finance, and was appointed on 7 June 2013.
At the same time, the Board of Directors and Management of Pos Malaysia would like
to convey our sincere appreciation to YB Senator Datuk Low Seng Kuan who resigned
from his position as the Company’s Senior Independent Director on 16 May 2013 to
take up a new posting as a Minister in the Prime Minister’s Department. We also
would like to thank Dato’ Wee Hoe Soon @ Gooi Hoe Soon, Dato’ Lukman bin Ibrahim
and Dato’ Krishnan a/l Chinapan, who all stepped down during the period under
review, for their contributions.
ACKNOWLEDGEMENTS
I would like to take this opportunity to thank our various stakeholders who have
contributed to Pos Malaysia in one way or another. First and foremost, on behalf of
the Board of Directors, I would like to express our gratitude to our employees for their
loyalty and unfaltering commitment in supporting the Company’s Transformation Plan
and business strategies. It is my fervent wish that they continue to display the same
dedication and team spirit as we strive to achieve the objectives of SCORE and take
the Company to greater heights.
I wish to extend our humble appreciation to the then Minister of Information,
Communications and Culture; YBhg Tan Sri Dato’ Seri Utama Dr. Rais Yatim, Dato’
Mohamed Sharil Mohamed Tarmizi, Chairman of the Malaysian Communications and
Multimedia Commission as well as thank the Ministry, the Commission and Bank
Negara Malaysia for their support and encouragement. I would also like to welcome
the Minister of Communications and Multimedia; YB Dato’ Sri Ahmad Shabery Cheek
as we look forward to the continued partnership with all our stakeholders, to serve the
rakyat to the best of our ability, fulfilling their needs and providing convenience at our
touchpoints all over the country.
On behalf of my colleagues on the Board, I would like to acknowledge the significant
stewardship of Dato’ Khalid bin Abdol Rahman, who served as the Group Chief Executive
Officer (“GCEO”) in the year under review until his reappointment to DRB-HICOM Group
in February 2013 and also to Encik Mohd Shukrie bin Mohd Salleh, who assisted in
managing the team at Pos Malaysia with the Board and I, during the interim period. At
the same time, we welcome our new GCEO, Dato’ Iskandar Mizal bin Mahmood, who
assumed his position effective 15 July 2013. With his vast experience and excellent
leadership qualities, we believe Pos Malaysia will continue to chart excellent growth.
To our valued shareholders, thank you for your support, trust and confidence in the
Company. We would like to assure you that we will strive to excel and deliver
sustainable returns.
Finally, I would like to express my gratitude to fellow members of the Boards of Pos
Malaysia for your wise counsel which has helped the Company in its growth in the last
financial year. We have a great team here at Pos Malaysia, and my only wish is for us
to continue working together in Looking Ahead Going Beyond as we endeavour to stay
ahead of the curve and realise our Vision – for the benefit of the stakeholders and the
nation.
Thank you.
I would also like to acknowledge Pos Malaysia’s partners and loyal customers for their
trust and confidence in the Company’s ability to deliver and excel. We pledge to
continue in our efforts to enhance our operational efficiency and service quality to be
at par with best practices.
Tan Sri Dato’ Sri Haji Mohd Khamil bin Jamil
Chairman
15
Pos Malaysia Berhad
Annual Report 2013
Management Report
Postal services organisations globally continue
to face pressure on structural mail volume
decline brought about by the advent of the
digital revolution whilst facing the economic
malaise that is dampening most developed
economies. Malaysia was insulated from the
worst of the woes dragging global economies,
as Gross Domestic Product (GDP) grew by a
healthy 5.6% in 2012, thanks to strong economic
fundamentals, which were further boosted
by unrelenting efforts by the Government
and private sector to realise the goals of the
Economic Transformation Programme.
16
www.pos.com.my
At Pos Malaysia, we stood to benefit from the continued vibrancy of the domestic
economy. While the pressures of the digital economy continue to squeeze on our
traditional source of income, we have embarked on a strategic transformation journey;
diversifying our businesses to secure new and stable sources of revenue and to regain
our stature as an organisation that provides solutions which are relevant to today’s
increasingly digital lifestyle.
During the financial year under review, we entered the second Wave of our strategic
transformation journey – themed SCORE. SCORE – which takes us from year 2013 to
2017 – represents the beginning of Pos Malaysia’s strategic transformation, where we
have set out to aggressively pursue revenue diversification strategies which include
embracing digital opportunities. SCORE was launched with a portfolio of strategic
initiatives that strives to expand our revenue sources and to address cost concerns. In
its first year, SCORE has already managed to yield encouraging revenue to the Group.
FINANCIAL PERFORMANCE
The Group achieved revenue of RM1,269.5 million in the financial year ending
31 March 2013 (FY 2013), marking a 7.8% increase from previous corresponding
period. Group operating expenses (OPEX), meanwhile, rose by 6.0% to RM1,108.7
million in tandem with the rising business costs. Containing staff costs, which
represent 61.4% of total OPEX, proved challenging as a result of the Federal
Government Gazette on Minimum Wage (Amendment) Order 2012 as well as the
implementation of a five-day working week. However, lower fuel surcharges during the
financial year and lower rental, communications and utility spending helped mitigate
this effect.
The slower OPEX growth against revenue translated into improved profitability
performance. Profit Before Tax (PBT) and Profit After Tax (PAT), which settled at
RM191.9 million and RM151.3 million respectively, demonstrated marked improvement
of 26.6% and 50.4% against preceding year.
OPERATIONS REVIEW
Mail Business
The mail business, the core revenue contributor, has developed an extensive postal
network over the years. At the heart is the Pusat Mel Nasional (PMN) in Shah Alam,
supported by 24 Mail Processing Centres, 348 delivery branches, more than 3,300
street posting boxes, and an international gateway at the Kuala Lumpur International
Airport. These are served by over 5,000 delivery postmen, who also deliver to almost
8 million addresses throughout the country.
Mail remains the largest revenue contributor, accounting for 57.1% of total Group
revenue. Revenue from mail business recorded a marginal decline of 0.2% against
preceding year to RM724.5 million amidst sustained mail volume.
In an effort to arrest mail volume decline and diversify our revenue beyond traditional
mail, we have launched Direct Mail and PosEdaran in FY 2013. Direct Mail presents
a creative avenue for customers to advertise their business, products and services
through the distribution of mail or physical samples to targeted recipients in a more
effective manner. PosEdaran is an effort to leverage further on the current mail
network to deliver solutions beyond traditional mail offerings; such as mobile prepaid
top-ups, personal despatch and distribution services.
The digital revolution is a double-edged sword. While it diverts physical communications
away from our core mail business, it is also an enabler to increase efficiency. During
the year we saw the implementation of a Radio Frequency Identification (RFID) Street
Posting Box Monitoring System which monitors the collection of mail from post boxes
and the use of scanning technology at PMN to improve the speed and accuracy of
mail processing. Mail automation level improved to 80% from 63%. Various operational
efficiency programmes are also being put in place such as the HICOM Management
System which encompasses Visual Management, 5S and Autonomous Maintenance.
At the same time, we continue to streamline our physical presence. The Batu Pahat
Mail Processing Centre (MPC) was integrated with the MPC in Kluang, and seven
delivery branches countrywide were rationalised and personnel were redeployed to other
growth areas.
17
Pos Malaysia Berhad
Annual Report 2013
Management Report (cont’d.)
Courier Business
Retail Business
Courier business, encompasses PosLaju, the nation’s preferred domestic courier and
premium postal services provider, and AsiaXpress which focuses on international
courier services. PosLaju boasts an extensive network in Malaysia, as its services are
readily accessible throughout Malaysia at 65 PosLaju centres, more than 700 post
offices, inclusive of 156 PosShoppe, over 300 mini post offices and 24 units of
Pos-On-Wheels mainly serving remote areas in Malaysia.
Over the years, Pos Malaysia has evolved into a one-stop centre for various services
such as household bill payments, renewal of driving licences and road tax, purchase
of motor and non-motor insurance, shared banking services and worldwide remittance
services. These are offered at our network of post offices, mini post offices, postal
agents, mobile Pos-on-Wheels and self-service terminals branded as POS24.
Courier and premium postal services which have been identified as a key growth
area within Pos Malaysia, posted solid double digit growth to garner a revenue of
RM322.7 million. This translated into higher contribution to Group revenue of 25.4%
from 21.4% in the previous year. E-commerce has spurred demand for this segment
to facilitate the delivery of merchandise purchased online. Consequently, PosLaju saw
positive growth in the On-Demand retail business segment, leading to revenue from
On-Demand services surpassing that of business courier services.
In maintaining its growth momentum, efforts are underway to increase accessibility,
adapting to the busy and changing lifestyles of our customers. We introduced the
PosLaju Authorised Agent program; allowing third parties to offer selected courier
services such as accepting courier items for delivery and selling PosLaju Prepaid Boxes
and Envelopes, at the same time extending the working hours of selected PosLaju
Centres and also operates during the weekends. To date we have more than 100
PosLaju Authorised Agents across the nation.
During the financial year, two new services were introduced as part of the Strategic
Initiatives under SCORE, namely Al-Ajwa and Integrated Fulfillment Services (IFS). AlAjwa involves trading of products from the Middle East incorporating shipping
arrangements, while IFS comprises end-to-end logistics solutions provided primarily to
manufacturing and service industry.
PosLaju also implemented an advanced IT system, 1Pittis, to provide better tracking
and tracing facilities. This contributed to an improved courier service quality. Despite
an increase in volume handled, PosLaju was still able to improve the timeliness of its
one-day delivery standard – from 95.5% in 2011 to 97.0%.
18
Our retail business closed the year with revenue of RM175.3 million, representing a
10.0% growth from previous year. Retail revenue saw double digit growth on the back
of higher commission rates from existing partners and an increase in the number
of high-margin transactions as we aggressively expand our financial services
offerings. This is achieved through the introduction of two new Strategic Initiatives –
ArRahnu@POS, a secured Shariah-compliant microcredit financing facility; and
PosAssurance, our first self-branded life insurance plans.
ArRahnu@POS was launched in July 2012 through a joint venture with Bank Muamalat
Malaysia Berhad. As at June 2013, we had established 50 Ar-Rahnu outlets within
our post office network, targeting areas where there are opportunities in the market.
Meanwhile, PosAssurance offers two life insurance products over our counters, branded
as PosHayat and Pos Bestari, which were developed in collaboration with Uni.Asia Life
Assurance Berhad.
During the year, we began the process of upgrading our front-end system with a new
state-of-the-art IT infrastructure. With the new front-end system, we shall have a new
platform which is robust and is geared towards supporting our future growth and
expansion plans. To further enhance customer convenience, we deployed an additional
13 POS24s, where customers can pay their bills and purchase stamps, bringing the
total number of self-service terminals to 25. These terminals, which operate 24 hours
7 days a week, provide an alternative to queuing at our counters and enabling our
customers to transact beyond normal office hours.
www.pos.com.my
Our Philately unit has issued 17 new stamp collections which featured special
techniques such as hot stamping, printing on foil, the use of glitter and fragrance and
special die-cuts to create innovative designs. The collections commemorating the
Diamond Jubilee of Queen Elizabeth II and the Installation of 14th DYMM Yang diPertuan Agong were overwhelmingly popular. Our Oh Memang Gempak (OMG) Kembara
Setem programme, which aims to nurture young stamp enthusiast, received a positive
boost when the Ministry of Education approved its extension across the nation. We
received encouraging response from schools to OMG, which saw more than 60 schools
signing up, exceeding our target of 25 schools.
Digicert has a portfolio of government and private sector clients who leverage on its
PKI technology. Among the company’s ongoing contracts are the provision of the
e-Filing system for the Inland Revenue Board of Malaysia; the Quality Efficacy Safety
System (QUEST) for the National Pharmaceutical Control Bureau; Atom Energy
Licensing Board, e-Syariah, eCourt and a Pensions Online Workflow Environment for
the Public Services Department, Government Financial Management Accounting
System (GFMAS) for Accountant General Malaysia; online passport registration for the
Immigration Department of Malaysia; and internet banking for corporate clients of
CIMB Bank Berhad and Bank Rakyat Berhad.
Printing and Insertion Business
INTERNATIONAL RELATIONS
The printing and insertion business of Pos Malaysia is operated through Datapos (M)
Sdn Bhd, one of the leading players in the hybrid mail industry. Datapos recorded an
increase of 15.7% in consolidated revenue during the financial year, from RM16.4
million to RM19.0 million. This was attributed to an increasing customer base and
business volume, partly due to new products launched. In 2012, Datapos moved into
its new premise in Shah Alam which has more than double its workspace and now
accommodates its printing and insertion machines under one roof. This has enabled
Datapos to restructure its operations and integrate more seamlessly with mail
processing and delivery.
Digital Certification Business
Digicert Sdn Bhd (Digicert), a wholly-owned subsidiary of Pos Malaysia, is the first
Licensed Certification Authority in Malaysia. It engages in the issuance of legally
binding digital certificates as part of the Public Key Infrastructure (PKI) technology in
fulfilling the requirements imposed by the Digital Signature Act (DSA) 1997.
Pos Malaysia continues to strengthen our standing in the international postal
community by participating in regional and global postal initiatives. Regionally, we
have been contributing towards efforts aimed at enhancing the quality of cross-border
mail and parcel service, while at the global level we are involved in projects that serve
to strengthen the international postal network.
Our active participation in international efforts led to Malaysia being elected to the
Postal Operations Council (POC) at the 25th Universal Postal Union (UPU) Congress
held in Doha, Qatar in October 2012, where we have been entrusted with the following
leadership roles:
• Vice Chair of Physical Services Committee (Committee 3) and member of the POC
Management Committee
• Chair of Parcel Post Remuneration Working Group under Committee 3
• Member of UPU-World Customs Organisation Contact Committee
• Member of dotPost Steering Committee
19
Pos Malaysia Berhad
Annual Report 2013
Furthermore, we are a member of various working groups under the Supply Chain
Integration Committee, Market Development Committee, e-Services Committee and
Postal Financial Services Committee.
Our leadership positions in UPU enable Pos Malaysia to ensure the interests of
Malaysia and the region are taken into consideration in key decision-making processes.
Among others, we promote UPU’s policy of advocating the inter-operability of a single
postal territory worldwide, namely affordability, accessibility, security and integrity.
Closer to home, Pos Malaysia chaired the 19th ASEAN Postal Business Meeting and
the ASEANPOST++ Business Meeting in Siem Reap, Cambodia in November 2012.
One successful outcome of the ASEANPOST meeting was the creation of a project
group comprising the 10 ASEANPOST members and five dialogue postal partners to
develop and implement a regional e-Commerce project. Another highlight of the
meeting was Pos Malaysia making way for a new chair of ASEANPOST after helming
the group for 21 years since 1992. The honour was handed over to Thailand Post in
Siem Reap. Pos Malaysia will continue to play a key role in strengthening the ASEAN
postal network in advance of liberalisation with the advent of the ASEAN Economic
Community (AEC) in 2015.
REGULATORY DEVELOPMENTS
Throughout FY 2013, Pos Malaysia worked on several regulatory development projects
with the then Ministry of Information, Communications and Culture (KPKK) and the
Malaysian Communications and Multimedia Commission (MCMC). One of the notable
developments for Pos Malaysia was the approval of 5-day working week for all Pos
Malaysia staff by KPKK. As a result, all postal outlets implemented new operating
hours with non-operations of one-man and two-men postal outlets on Saturdays from
1 January 2013. The half-day opening of bigger postal outlets ensures all customers
of Pos Malaysia continue to access postal services in a convenient manner. The
implementation of the 5-day working week took effect on 1 February 2013 for Sabah
and Sarawak. The 5-day work week concept also means that all mail operations
facilities will be closed on Saturdays with no mail collection, processing and delivery
of mail on Saturdays.
20
www.pos.com.my
Pos Malaysia achieved another regulatory milestone by successfully completing the first
phase of the Postal Transformation Program for Sabah and Sarawak (PTPSS) with the
appointment of 600 Community Postmen and 1,000 Postal Community Representatives
as well as the implementation of 10 Pos-on-Wheels in Sabah and Sarawak since
2010. The PTPSS was a government-funded project aimed at bringing Pos Malaysia
to rural areas of Sabah and Sarawak, thereby enhancing quality of life and enabling
communications between rural and urban communities. In order to further strengthen
integration between Peninsular Malaysia and Sabah and Sarawak, KPKK has approved
PTPSS Phase II with additional budget from the Government. Phase II of PTPSS
commenced in November 2012 for a period of two years.
As an integral component of our employee engagement, we maintain a harmonious
management-union relationship via a series of ‘Majlis Perundingan Bersama’ dialogue
sessions with the seven union groups that represent Pos Malaysia. At these sessions,
all issues and grievances affecting our employees are addressed and resolved amicably
for the benefit of all parties.
As part of our commitment to employee welfare, Pos Malaysia has established an
Education Assistance Scheme through which we provide financial assistance to the
children of our employees. During the financial year, we disbursed a total of
RM110,000 in grants to five students pursuing three-year tertiary education in
automotive engineering and business courses at the International College of Automotive
Malaysia in Pekan, Pahang.
OUR MOST VALUED RESOURCES
Today, as we forge ahead with our transformation journey, it is imperative for
employees – from our postmen to senior management – to be fully aware of
strategic thrusts of SCORE so that they are able to play their part in achieving
long term goals. This is in line with our human development strategy to engage
motivate our more than 16,000 staff to keep improving, thus contributing to
success.
our
the
our
and
our
Communications and engagement are essential in this regard. The SCORE Office
maintains a steady stream of communication to all employees at all levels via internal
emails, flyers, posters and illustrations including providing a platform for two-way
communications.
Our transformation necessitates continuous training and the professional development
of our workforce. This will equip our employees with the relevant knowledge and skills
to thrive in a dynamic business environment, and ensure we have the human capital
required to drive us forward. In our quest for excellence, we identify and empower
employees who show true potential, and provide them with targeted programmes under
our new Talent Management Framework.
REDEFINING BUSINESS FOCUS – MOVING FORWARD
As we strive to transform Pos Malaysia to be the trusted leader in the delivery of
integrated physical and digital solutions, we have realigned our core businesses from
product-centric, to customer-driven solutions moving forward. We believe this move will
increase customer centricity; stimulating innovative business strategies to drive further
growth. This shift will allow Pos Malaysia providing solutions that go beyond our
traditional services and further enhance our product and service delivery. The
restructuring breaks down the traditional boundaries of postal services, allowing us to
leverage on greater synergies from our assets and core competencies to propel us to
venture into new growth areas to achieve double-digit business growth, year on year,
through to 2017.
As of 1 April 2013, our Mail business now falls under Communications and Distribution
Solutions (CDS); Retail business is subsumed under One-Stop Solutions (OSS); Courier
business has expanded to become Supply Chain Solutions (SCS); whilst Digicert and
Datapos form the core of our Digital Solutions (DS). We have also created a new cluster;
International Business Solutions (IBS), which will manage all international products and
services which previously were managed under the different core businesses.
21
Pos Malaysia Berhad
Annual Report 2013
Communications and Distribution Solutions
Supply Chain Solutions
In our strategy to ‘look ahead and deliver beyond’ mail, we need to capitalise not only
on the physical aspects of our extensive network and workforce, but also on the
intangible relationships that we share with the many communities that we serve;
through our postmen. While these relationships are strong in rural communities, we
are working on re-establishing those special ties that we shared with householders in
urban areas. This will place us in a better position to understand the needs of our
customers thus be able to develop more relevant solutions.
While our PosLaju is already the leading player for domestic courier shipment, under
the broader-based umbrella of Supply Chain Solutions we intend to further expand this
business. The increasingly busy lifestyles of Malaysians provide an opportunity to
create greater value to our services through innovative touch-points and extended
working hours. Efforts are under way to further strengthen the courier business to
entrench our position as a leader in the domestic delivery segment. At the same time,
the Supply Chain Solutions will seize new opportunities within the growing logistics
value chain to offer integrated and customised solutions to its customers.
For instance, the PosEdaran’s business will be expanded to new growth areas for
further customer convenience. We also intend to further develop our Direct Mail, a
service that is still in its infancy in Malaysia. Direct Mail enables customers to channel
their advertising spend in a more strategic manner and is expected to contribute
significantly to mail volume.
One-Stop Solutions
Our One-Stop Solutions provider aims to capitalise on our current network of outlets by
expanding on the range of financial services offered. Having established ArRahnu@POS
outlets in FY 2013, one of our immediate focus areas is to further expand this service,
bringing the total number of outlets to 100 by end FY 2014, and positioning Pos
Malaysia as a Top 3 Ar-Rahnu player in the domestic market. We are also working to
extend the International Express Money Order service that we currently offer to Indonesia
to a wider range of countries including Vietnam, India, Bangladesh, Cambodia and Laos.
Digital Solutions
The digital revolution opens up a huge opportunity for Pos Malaysia to extend the
reach of our current services whilst developing new ones, which are complementary to
our existing offerings. In the pipeline is the relaunch of PosOnline, which will
consolidate our current online services under a single platform. Malaysians will be able
to access a host of digital services, from simple online purchases to bill presentation
and fulfillment. Leveraging on Datapos’ and Digicert’s resources, customers’ bills can
be presented on the new PosOnline, coupled with secure online payment capabilities,
allowing for added convenience.
International Business Solutions
PosAssurance has significant growth potential as our existing network allows for an
unprecedented reach to the under-insured Malaysian populace. There are also plans in
the pipeline to collaborate with a Takaful principal to develop and offer family Takaful
products at our outlets, thus adding to our current range of financial solutions.
The establishment of the International Business Solutions cluster will enable us to
capitalise on opportunities in the attractive cross border market. Amongst new solutions
to be launched include Surface-Air Lifted mail services and cross-border e-commerce.
We will have a dedicated team to look ahead and go beyond our current services
overseas. We have already made inroads with our counterparts in Europe to establish
Pos Malaysia as their gateway to ASEAN.
Given the wide range of financial products and services that we offer at our post
offices and alternative channels, supported by our new front-end system, we are well
positioned to become a leading One Stop Solutions provider for our valued customers.
We feel confident of making great strides in the international arena given our strong
fundamentals and our position in the Postal Operations Council of the Universal Postal
Union, which strengthens our visibility and stature in the global space.
22
www.pos.com.my
OUTLOOK
The financial year under review has been a turning point in the history of Pos
Malaysia. We have introduced many new services, upgraded our systems and
established ourselves more firmly within the international fraternity of postal
organisations. These positive developments have placed us in a very strong position to
grow both organically and inorganically.
The communications space globally continues to evolve rapidly, and postal organisations
need to remain at the forefront of this change in order to stay relevant. Pos Malaysia
is fully cognisant of the fact, and our accelerated transformation is a testament to our
commitment to embrace the challenges facing us. We believe we have made good
headway over the last three years, and are encouraged by the results thus far.
Notwithstanding our achievements, we endeavour to push harder, embracing new
opportunities to transform into the trusted leader in the delivery of integrated physical
and digital solutions.
Dato’ Iskandar Mizal bin Mahmood
Group Chief Executive Officer
23
Pos Malaysia Berhad
Annual Report 2013
Accolades and Awards
1
PosLaju
• Reader’s Digest Trusted Brands Gold Award in the Airfreight/
Courier Service Category in Malaysia for 2012
• Frost & Sullivan Malaysia Excellence Award for the Domestic
Express Service Provider of the Year for 2012
24
2
Retail Services
• Top two zakat counters in 2012 by Pusat Pungutan Zakat Majlis Agama Islam Wilayah
Persekutuan (PPZ MAIWP) – KLCC and Gombak Post Office
• Special award to Pos-on-Wheels in Wilayah Persekutuan by Pusat Pungutan Zakat Majlis
Agama Islam Wilayah Persekutuan (PPZ MAIWP)
• Zurich Insurance Malaysia Berhad: Super Platinum Award
• RHB Insurance Berhad: Top Financial Institution – Top Agencies Financial Categories
• Allianz General Insurance Company (M) Berhad: Franchise Appreciation Award
• Kurnia Insurance Berhad: Top Corporate Producer 2012
• Western Union’s Agent with highest incremental transaction
www.pos.com.my
3
Digicert
• Retained ISO 9001:2008 certification for the
third consecutive year, and complied with all
requirements of the Digital Signature Act 1997
as verified by Ernst & Young, the registered
auditor of the Malaysian Communications and
Multimedia Commission (MCMC)
4
International Business Solutions
• Recipient of the Expedited Mail Service (EMS):
UPU EMS Gold Certification 2012 for the second
consecutive year
• Appointed as a member of the Postal Operations
Council during the 25th Universal Postal Union
Congress at Doha, Qatar
• Attained Quality Management Level A from the
Universal Postal Union
5
Internal Audit
• Recognition for Conformity with the Institute of
Internal Auditors’ International Standards for the
Professional Practice of Internal Auditing
25
Pos Malaysia Berhad
Annual Report 2013
List of Offerings
mail
Printing and insertion
courier, express and parcel
PRODUCTS AND SERVICES
SERVICES
• MAILING SOLUTIONS
• Standard Mail
• Non-Standard Mail
•Postcard
•Aerogramme
•MelRakyat
• PREMIUM MAILING SOLUTIONS
•PosDaftar
• DATA PROCESSING
• Database Management
• Software Solutions
• HIGH SPEED DIGITAL LASER PRINTING
•
•
•
•
•
High Volume Digital Quality Printing
Personalised (Variable Data Printing)
Simplex Highlight Colour
Simplex and Duplex B&W
Continuous and Cut Sheet Printing
• BUSINESS MAILING SOLUTIONS
• Prepaid Postage
•Franking
•Periodicals
•PosDokumen
• Small Packet
• Corporate Mail Management
• Business Reply Services
• Special Handling Services
• Customs Clearance
• Private Letter Box
• Locked Bag Service
• Window Delivery Counter
• ADVERTISING SERVICES
•AdMail
• Direct Mail
•Envo-Ad
26
• Next working day delivery (D+1) within PosLaju
coverage area
• SAME DAY DELIVERY
• Local Town & Cross Town delivery for documents
up to 1kg
• TIME CERTAIN SERVICE DOMESTIC (TCS)
• Guaranteed delivery by 10 am the next working
day
• MAIL PROCESSING
• Enveloping, Bar Coding and Account Number
Verification (ANV)
• Poly Wrapping (plastic)
• Page Mailer / Seal Mailer
• Address Labelling, AR Register, Packing and
Reporting
• Courier Mail Agent
• POSLAJU PREPAID BOXES & ENVELOPES
• A convenient and cost-saving shipping solution
for documents and merchandise of up to 10kg
available at more than 700 sales outlets across
Malaysia including PosLaju Centres, Post Offices
and Authorised Agents
• POS PARCEL
•TRANSPORTATION
• POST OFFICE SERVICES
• NEXT DAY DELIVERY
• Pick-Up and Delivery
• VALUE ADDED SERVICES
• Return Mail Management
• Data Archiving and Imaging
• E-Bill Presentment
• Economy shipping with standard delivery service
to all destinations in Malaysia
• POS EKSPRES
• Fast, convenient and economical way of sending
documents with a Next Day Delivery guarantee
www.pos.com.my
INTERNATIONAL
• POSLAJU PACK
• Boxes, envelopes and tubes available at our
PosLaju branches
• ON DEMAND PICK-UP
• On Demand Pick-up service available at tel:
1 300 22 5258 or online: www.poslaju.com.my
for an additional charge of RM5
• AUTOMOTIVE LOGISTICS
• Dependable automotive logistics services for
dealership, vehicle manufacturers and remarketers
• WAREHOUSING SERVICES
• These services fulfill the needs of our corporate
customers
• International Mail Services
• Air Mail
• Surface Mail
• International Parcel Services
• Air Parcel
• Surface Parcel
• International Small Packet Services
• POSLAJU INSURANCE
• Air Small Packet
• Insurance for valuable items
• International Registered Service
• TRACK & TRACE
•Via www.pos.com.my, www.poslaju.com.my or via
SMS. Type PL<space>your consignment number
and send to 33333. RM0.50 will be charged for
each SMS sent. Available for Celcom, Maxis and
DiGi subscribers only
• DISTRIBUTION & LOGISTICS
• Various distribution & logistics services to meet
corporate customer’s needs
• International Prepaid Packet
• EMS International
• Delivery to over 220 countries worldwide through
Express Mail Service (EMS)
• Customized Shipping Solutions –
AsiaXpress
• AsiaExpress delivers the best courier service to
international destinations.
27
Pos Malaysia Berhad
Annual Report 2013
List of Offerings (cont’d.)
retail
• PAYMENT SERVICES
• Bill Payment
oElectricity
oWater
o Telephone and Internet
oAssessment
o Quit Rent
o Medical Bills
• Public Services
o JPJ Driving License Renewal
o JPJ Road Tax Renewal
o SPR Voters’ Registration and Change of
Address
o SOCSO Payment
o LHDN Income Tax Payment
o LHDN Stamp Duty
o PDRM Traffic Summons Payment
o JPJ Traffic Summons Payment
• Loan Repayment
oTEKUN
o Jabatan Perumahan Negara
oPKNS
• Student Loan Repayment
oJPA
oPTPTN
oMARA
o Education Foundation (13 Foundations)
o Ministry of Higher Education (KPT)
o Perbadanan Tabung Pendidikan Kemahiran
(PTPK)
28
•Zakat (Tithe) Payment
o 14 States Zakat Centres
•Waqaf
oYawatim
• Ticketing and Booking
oFirefly
• Telco Prepaid Cards/Reload
oMaxis
oDiGi
oCelcom
•FOMEMA
• Lembaga Tabung Haji
• Purchase and Registration
o PI Registration
• FINANCIAL SERVICES
•ArRahnu@POS
• Domestic Remittance
o Domestic Money Order
o Postal Order
o Express Money Order
• International Remittance
o International Express Money Order
o International Money Order
o Western Union
• Unit Trust
o PNB Products (ASN, ASB, ASM, ASW, ASD,
ASG, AS1M)
• General Insurance
o Pos Insurance 1 Malaysia (Individual & Family)
o
o
o
o
o
o
o
o
o
Pos Auto Plus
Pos Auto Assist
Pos Hospital Cash Income
Pos Maid Protector
Pos Motorshield PA
Pos Cuti-Cuti PA
Pos Raya Insurance
PosHayat (Life Insurance)
Foreign Worker Hospitalisation and Surgical
Insurance Scheme (SKHPPA)
o Drivers & Passengers PA
o Flexi PA
o Motor Insurance in Partnership With Panel
Insurers:
– UniAsia General Insurance
– Allianz General Insurance
– Kurnia Insurance
– Zurich Insurance (formerly known as MAA
Assurance)
– ETIQA Insurance & Takaful
– Syarikat Takaful Malaysia
– RHB Insurance
– Malaysian Motor Insurance Pool
– Multi Purpose Insurance
• Life Insurance
o UniAsia Life Insurance
–PosHayat
– Pos Bestari
www.pos.com.my
DIGITAL CERTIFICATION
• Shared Banking Services (*At Selected Outlets)
o RHB Bank*
–Transactional
• Cash Deposit
• Cash Withdrawal
• Loan Repayment
• Funds Transfer
– Marketing of Retail Financial Products
(RHB EASY Kiosk)
• ASNB Loan
• Credit Card
• Personal Financing
• PA Insurance
• Life Insurance
• EASY Savings
oMaybank*
– Cash Deposit
– Cash Withdrawal
– Loan Repayment
•POSSHOPPE
• Pos Ekspres Envelopes
• Pos Laju (Prepaid, Postpaid)
• Paket Pos Terus
•Philately
o Annual Stamp Albums
o Stamp Booklets
o Miniature Sheets
o Folder Sets
o Other Collectables
• PosNiaga Packs/Boxes
• Postcode CD
• Postal Related Products
oEnvelopes
o Padded Envelopes
oTapes
o Wrapping Material
o Parcel Strings
o Postcode CD
o Greeting Cards
•PHILATELY
•Stamps
o Special Issues
oCommemorative
oDefinitive
• SODA Account
o New Account Registration
o Account Top-Up
• Personalised Stamps
o SetemKu Corporate
o SetemKu Individual
• Other Philatelic Products
o First Day Covers
o Miniature Sheets
o Presentation Packs
o Folder Sets
o Annual Stamp Albums
o Stamp Booklets
o Greeting Stamps
• Other Collectables
• Authentication & Digital Signature
Solutions
• Server Certificate
• DIGISGN ID Enhanced
oSmartcard
• DIGISIGN ID Basic
o Smartcard, Security Token and Softcert
• DIGISIGN Wireless PKI
• DIGISIGN PKI Toolkit
o DC Tools
o DC Signature
o DC Tools Crypto
• iVEST Client
• iVEST Biz Client
• iVEST Server
• Enterprise Managed IT Security
Services (EMITSS)
• Vulnerability Assessment Services (VAS)
o External Penetration Testing Services
o Internal Penetration Testing Services
o Web Application Testing Services
o Vulnerability Assessment
• Security Information Event Monitoring Services
(SIEMS)
• Managed Identity Management Service
o Support Maintenance Services
o Preventive Maintenance Services
o Deployment & Configuration Services
29
Pos Malaysia Berhad
Annual Report 2013
Corporate Events
7 April 2012
20 – 28 April 2012
30 April 2012
launch of PosLaju Prepaid Box and
Envelope
Minggu Saham Amanah Malaysia 2012
Pos Malaysia partners with Royal
Malaysian Customs Department
PosLaju launched its Prepaid Box and Prepaid Envelope
at Plaza Shah Alam. The boxes and envelopes, which
come in various sizes for items weighing up to 10kg,
can be used for mailing to any destination within
Peninsular Malaysia.
Pos Malaysia participated in the annual Minggu Saham
Amanah Malaysia, organised by Permodalan Nasional
Berhad in Kota Kinabalu, Sabah, where its Strategic
Business Units including Mail, Retail and PosLaju
exhibited their services.
Pos Malaysia and Royal Malaysian Customs Department
(Kastam DiRaja Malaysia – KDRM) signed a strategic
partnership to extend KDRM’s services at Pos Malaysia
International Hub, Kuala Lumpur International Airport
(KLIA), Sepang.
30
www.pos.com.my
26 June 2012
9 August 2012
6 & 10 September 2012
launch of Ar-Rahnu Services at Pos
Malaysia Outlets
20th Annual General Meeting
HARI RAYA Open Houses
Pos Malaysia and Bank Muamalat Malaysia Berhad
(BMMB) formed a joint venture to offer Islamic pawn
broking services, Ar-Rahnu, at selected Pos Malaysia
outlets. The Ar-Rahnu services will be carried out and
managed by Pos Malaysia subsidiary, Pos Ar-Rahnu Sdn
Bhd, under the brand name ArRahnu@POS.
Pos Malaysia held its 20th Annual General Meeting at
the Istana Hotel Kuala Lumpur.
Pos Malaysia celebrated Hari Raya Eidul Fitri with its
staff at the Commuter Walkway, Dayabumi Complex on
6 September; and with its corporate clients and
members of the media at One World Hotel, Bandar
Utama on 10 September.
31
Pos Malaysia Berhad
Annual Report 2013
Corporate Events (cont’d.)
17 October 2012
17 December 2012
19 December 2012
Launch of Etiqa Takaful Flexi PA and
Driver PA
Launch of Senang Menang@Pos Contest
Eksplorasi Alam Cuti Sekolah
Pos Malaysia and Etiqa Takaful established a strategic
collaboration to offer Takaful Flexi PA and Takaful
Drivers & Passengers PA for Etiqa customers at all
Pos Malaysia outlets.
Pos Malaysia launched Senang Menang@POS contest to
increase awareness of its retail and financial services.
Senang Menang@POS was held from 17 December
2012 until 24 February 2013 at all Pos Malaysia
outlets.
Pos Malaysia organised a special programme for the
children of its staff to visit Padang Kemunting Sea
Turtle Sanctuary. 80 children participated in turtle
conservation activities including a ‘gotong-royong’
session to clean up the beach as well as visit the
Al-Khawarizmi Astronomy Complex in Melaka.
32
www.pos.com.my
26 December 2012
21 – 23 January 2013
31 January 2013
School Uniforms for Orphans
Motivational Camp for adopted schools
Launch of PosLaju’s Hantar & Menang
Contest
Pos Malaysia took 75 orphans from Rumah Sentuhan
Budi, Kuala Lumpur and Rumah Limpahan Kasih,
Puchong to purchase school uniforms and other school
necessities at a leading departmental store.
Pos Malaysia organised a motivational camp for 90 Year
Six students from Sekolah Kebangsaan Tanjung Agas,
Pekan, Pahang and Sekolah Kebangsaan Pekan Pagoh,
Muar to help them prepare for the Ujian Penilaian
Sekolah Rendah school examinations.
PosLaju’s Hantar & Menang Contest was held to reward
all its walk-in as well as On-Demand Pickup (ODP)
customers who purchased its products and services
using Consignment Notes (such as sending courier
items with PosLaju) at any of the 63 PosLaju centres
all over the country during the contest period from
1 December 2012 until 31 March 2013.
33
Pos Malaysia Berhad
Annual Report 2013
12 March 2013
25 – 27 March 2013
30 March 2013
Launch of PosLaju Pekan, Pahang
Motivational Camp for orphans
deputy prime minister visits pusat mel
nasional
In line with Pos Malaysia’s ongoing efforts to offer
customer convenience in managing their courier and
express delivery requirements, Pos Malaysia launched
its 63rd PosLaju centre in Pekan, Pahang.
Pos Malaysia organised a motivational camp for orphans
from Rumah Sentuhan Budi, Kuala Lumpur and Rumah
Limpahan Kasih, Puchong with the main aim of boosting
their morale in overcoming life’s challenges as well as
motivate them towards achieving success in their future
undertakings.
Pos Malaysia welcomed YAB Tan Sri Dato’ Hj Muhyiddin
Haji Mohd Yassin, Deputy Prime Minister of Malaysia on
his working visit to the Pusat Mel Nasional in Shah
Alam. Accompanying the Deputy Prime Minister were
YBhg Tan Sri Dato’ Seri Utama Dr Rais Yatim, Minister
of Information, Communications and Culture, Dato’ Sri
Kamaruddin Siaraf, Secretary General, Ministry of
Information, Communications and Culture and Dato’
Mohamed Sharil Mohamed Tarmizi, Chairman of the
Malaysian Communications and Multimedia Commission
(MCMC). Also present to welcome the guests of honour
were Tan Sri Dato’ Sri Hj. Mohd Khamil Jamil, Chairman
of Pos Malaysia, Encik Mohd Shukrie Mohd Salleh, the
then Covering Group Chief Executive Officer of Pos
Malaysia, as well as the Board of Directors of Pos
Malaysia, the Management Team of DRB-HICOM and
the Leadership Team of Pos Malaysia.
34
www.pos.com.my
PUTIH = c = 0 HITAM = c = 0
BIRU = c = 100 KUNING = c = 0 MERAH = c = 0
m= 0
m= 0
m= 100
m= 100
m= 0
y=0
y=0
y = 100
y=0
y = 100
k=0
k=0
k=0
k=0
k=0
Government Programmes
Pos Malaysia fully support the Government’s
1Malaysia efforts as we believe in the
ideals of a united nation. We recognise by
taking part in Government activities, it
help us to build better relationship with
our stakeholders while at the same time,
allow us to bring greater value to the
community.
1
12 May 2012
2
14 May 2012
2012 National Labour Day Celebration
Launch of KPKK’s Moral Values
Campaign
For the very first time, Pos Malaysia participated in the
2012 National Labour Day celebration together with
other DRB-HICOM Group subsidiaries namely Proton,
Bank Muamalat and Alam Flora. 50 Pos Malaysia staff
participated in the celebration themed Pekerja
Berinovatif Penggerak Transformasi (Innovative
Employees Driving Transformation).
The 1Malaysia Values Campaign is a Ministry of
Information, Communications and Culture (Kementerian
Penerangan, Komunikasi & Kebudayaan – KPKK)
programme to promote moral values that serve to bind
society together. The ongoing campaign was inaugurated
by Deputy Prime Minister, YAB Tan Sri Dato’ Hj.
Muhyiddin Hj. Mohd Yassin on 14 May 2012 at the
National Library in Kuala Lumpur.
The celebration was officiated by the Prime Minister,
YAB Dato’ Sri Mohd Najib Tun Abdul Razak on 12 May
2012 at the Malaysia Agro Exposition Park Serdang
in Selangor.
During the event, the former Prime Minister Tun Dr
Mahathir Mohamed was conferred the honour of Ikon
Membaca Kebangsaan (National Reading Icon) while
Encik Mohd Fariz bin Kamaruzzaman, a postman from
Pudu Delivery Branch, was presented with the Excellent
Postman Award.
35
Pos Malaysia Berhad
Annual Report 2013
3
31 August 2012
4
15 November 2012
2012 National Day Celebration at Dataran Merdeka and 55th
Merdeka – Janji Ditepati Gathering at Stadium Bukit Jalil
2012 Maal Hijrah National Celebration
Pos Malaysia together with the MCMC and other telecommunications operators formed
the Communications Sector contingent at the National Day celebration at Dataran
Merdeka, Kuala Lumpur on 31 August 2012. The 300-strong contingent was led by
Dato’ Mohamed Shahril Mohamed Tarmizi, Chairman of MCMC. Pos Malaysia was
represented by its Group Chief Operating Officer, Encik Mohd Shukrie Mohd Salleh.
Every year, Pos Malaysia participates in the National Level Celebration of Maal Hijrah
organised by the Department of Islamic Development (Jabatan Kemajuan Islam
Malaysia – JAKIM). This year, the event was held at Putrajaya International Convention
Centre (PICC), Putrajaya on 15 November 2012 and officiated by DYMM Seri Paduka
Baginda Yang DiPertuan Agong, Tuanku Alhaj Abdul Halim Mu’adzam Shah Ibni
Almarhum Sultan Badlishah.
On the evening of the same day, 500 staff from Pos Malaysia represented the
Company at the 55th Merdeka – Janji Ditepati gathering held at Bukit Jalil National
Stadium, Kuala Lumpur. The event was officiated by the Prime Minister YAB Dato’ Sri
Mohd Najib Tun Abdul Razak.
36
www.pos.com.my
5
16 November 2012
2012 1Malaysia Letter Writing Competition
Pos Malaysia successfully organised the 2012 1Malaysia Letter Writing Competition in
collaboration with MCMC. This competition, which has now extered its third year
running was supported by KPKK and the Ministry of Education. The objective was to
promote proper usage of the national language among the younger generation as well
as to revive the art of letter writing.
Held from 1 April until 15 July 2012, participants were allowed to choose from three
themes: Amalan Berbudi Bahasa, Kebaikan Penggunaan Internet and Semangat
Kejiranan in line with the Nilai-nilai Murni Campaign inspired by YB Dato’ Seri Utama
Dr Rais Yatim, Minister of Information, Communications and Culture. Pos Malaysia
received an overwhelming response of 95,000 entries.
The prize giving ceremony was held on 16 November 2012, and was honoured by
Dato’ Jailani Johari, Chief Industrial Regulator Officer of MCMC.
37
Pos Malaysia Berhad
Annual Report 2013
6
5 December 2012
7
24 January 2013
Majlis Ramah Mesra Wakil Kesatuan-kesatuan Sekerja Pos
Malaysia bersama YB Menteri KPKK
1434H/2013M Maulidur Rasul Celebration
On 5 December 2012, Minister of Information, Communications and Culture
YBhg Tan Sri Dato’ Seri Utama Dr Rais Yatim met with representatives of Pos
Malaysia’s Unions and the Leadership Team at the Sultan Abdul Samad Complex in
Kuala Lumpur. The lively event served to strengthen the relationship between Pos
Malaysia and the Ministry. At the event, the Minister announced Pos Malaysia’s new
operating hours effective from 1 January 2013.
Pos Malaysia participated in the 1434H/2013M Maulidur Rasul Celebration organised
by the Department of Islamic Development (JAKIM) at Masjid Putra, Putrajaya on 24
January 2013, which was officiated by DYMM Seri Paduka Baginda Yang DiPertuan
Agong, Tuanku Alhaj Abdul Halim Mu’adzam Shah Ibni Almarhum Sultan Badlishah.
Pos Malaysia’s contingent of 75 staff participated in the march from the Tuanku Mizan
Zainal Abidin mosque to Masjid Putra, both in Putrajaya.
Pos Malaysia’s Chairman, Tan Sri Dato’ Sri Hj. Mohd Khamil Jamil, expressed his
highest gratitude to the Minister and pledged Pos Malaysia’s continued support and
unwavering commitment to the Ministry and the Government.
38
www.pos.com.my
8
2 February 2013
9
January – March 2013
2013 Federal Territory Day
Rebuilding Orang Asli Homes in Jelebu, Negeri Sembilan
Pos Malaysia’s contingent participated in the 2013 Federal Territory Day celebration
where it reiterated the Company’s commitment and determination to work together
continuously in order to develop the country’s economy, for the benefit of the people.
The event, organised by the Ministry of Federal Territories and Urban Wellbeing, was
held at the Cheras Football Stadium in Kuala Lumpur on 2 February 2013, and was
officiated by Prime Minister, YAB Dato’ Sri Mohd Najib Tun Abdul Razak.
Representatives from Pos Malaysia and KPKK helped to rebuild and renovate homes
in four orang asli communities in Jelebu, Negeri Sembilan, over a period of three
months from January until March 2013. Their activities were held in conjunction with
RTM’s Broadcast Extension to Aboriginal Community Village Programme and formed
part of Pos Malaysia’s ‘We Care’ corporate social responsibility campaign.
39
Pos Malaysia Berhad
Annual Report 2013
Pos Malaysia in the News
PREVIOUS
40
www.pos.com.my
Next
41
Pos Malaysia Berhad
Annual Report 2013
Corporate Information
Board of Directors
Board Committees
Non-Independent Non-Executive Chairman
Audit Committee
Dato’ Ibrahim Mahaludin bin Puteh
Senior Independent Non-Executive Director
Dato’ Sri Che Khalib bin Mohamad Noh
Independent Non-Executive Director
Datuk Mohamed Razeek bin Md Hussain Maricar
Non-Independent Non-Executive Director
Datuk Puteh Rukiah binti Abd. Majid
Abdul Hamid bin Sh Mohamed
Tender Board Committee
Chairman/Independent Non-Executive Director
Eshah binti Meor Suleiman
Chairperson/Non-Independent Non-Executive Director
Board Nomination and Remuneration Committee
Chairman/Non-Independent Non-Executive Chairman
42
Information and Communication Technology
Committee
Chairman/Independent Non-Executive Director
www.pos.com.my
Company Secretary
Share Registrar
Bankers
Dato’ Sabrina Albakri binti Abu Bakar
(LS 8508)
Symphony Share Registrars Sdn Bhd
Level 6, Symphony House, Block D13
Pusat Dagangan Dana 1
Jalan PJU 1A/46
47301 Petaling Jaya
Selangor Darul Ehsan
Tel: 603-7841 8000
Fax: 603-7841 8151/8152
HSBC Amanah Malaysia Berhad
Malayan Banking Berhad
CIMB Bank Berhad
Registered Office
Level 8, Ibu Pejabat Pos
Kompleks Dayabumi
50670 Kuala Lumpur
Tel: 603-2267 2267
Fax: 603-2267 2266
Investor Relations
Contact person: Nik Ahmad Fauzan Nik Mohamed
Group Head, Corporate Services
Tel: 603-2267 2267
Email:[email protected]
Stock Exchange Listing
Main Market of Bursa Malaysia Securities Berhad
Stock Name: POS
Stock Code: 4634
Auditors
KPMG (AF 0758)
Chartered Accountants
Level 10, KPMG Tower
8, First Avenue, Bandar Utama
47800 Petaling Jaya
Tel: 603-7721 3388
Fax: 603-7721 3399
Website
www.pos.com.my
43
Pos Malaysia Berhad
Annual Report 2013
Group Structure
Subsidiaries
No.
Shareholder(s)
Percentage of
Shareholding
1.
Prestige Future Sdn. Bhd.
PSH Capital Partners
Sdn. Bhd.
100%
2.
PSH Venture Capital Sdn. Bhd.
Pos Malaysia Berhad
100%
3.
PSH Express Sdn. Bhd.
PSH Venture Capital
Sdn. Bhd.
100%
4.
PSH Capital Partners Sdn. Bhd.
Pos Malaysia Berhad
100%
5.
PSH Allied Berhad
Pos Malaysia Berhad
100%
6.
PSH Properties Sdn. Bhd.
Pos Malaysia Berhad
100%
7.
Effivation Sdn. Bhd.
Pos Malaysia Berhad
PSH Properties
Sdn. Bhd.
99.99%
0.01%
8.
PSH Properties
Sdn. Bhd.
100%
Real Riviera Sdn. Bhd.
Pos Malaysia Berhad
10. Pos Takaful Agency Sdn. Bhd.
No.
Name of Company
Shareholder(s)
15. PSH Investment Holdings
(BVI) Ltd
Pos Malaysia &
Services Holdings
Berhad
16. Pos Ar-Rahnu Sdn. Bhd.
(formerly known as Bright
Emerald Sdn. Bhd.)
Pos Malaysia Berhad
Bank Muamalat
Malaysia Berhad
Percentage of
Shareholding
100%
80%
20%
Associates
No.
Name of Company
Shareholder(s)
Percentage of
Shareholding
1.
CEN Sdn. Bhd.
Pos Malaysia Berhad
42.5%
100%
2.
PosPay Exchange Sdn. Bhd.
Pos Malaysia Berhad
50%
Pos Malaysia Berhad
100%
3.
Elpos Print Sdn. Bhd.
Pos Malaysia Berhad
40%
11. PMB Properties Sdn. Bhd.
Pos Malaysia Berhad
100%
4.
CEN Worldwide Sdn. Bhd.
CEN Sdn. Bhd.
100%
12. Digicert Sdn. Bhd.
Pos Malaysia Berhad
100%
5.
CEN Technology Sdn. Bhd.
CEN Sdn. Bhd.
50%
13. Pos Malaysia & Services
Holdings Berhad
Pos Malaysia Berhad
100%
14. Poslaju (M) Sdn. Bhd.
Pos Malaysia Berhad
100%
9.
44
Name of Company
Datapos (M) Sdn. Bhd.
www.pos.com.my
45
Pos Malaysia Berhad
Annual Report 2013
Board of Directors
46
1.Datuk Mohamed Razeek bin
Md Hussain Maricar
2.Datuk Puteh Rukiah binti
Abd. Majid
Non-Independent Non-Executive
Director
Independent Non-Executive
Director
3. Abdul Hamid bin Sh Mohamed
Director
4.Dato’ Sri Che Khalib bin
Mohamad Noh
Director
www.pos.com.my
5.Tan Sri Dato’ Sri Haji
Mohd Khamil bin Jamil
6.Dato’ Ibrahim Mahaludin bin
Puteh
Chairman
Senior Independent Non-Executive
Director
7.Eshah binti Meor Suleiman
Director
47
Pos Malaysia Berhad
Annual Report 2013
Board of Directors Profile
Non-Independent Non-Executive Chairman
Tan Sri Dato’ Sri Haji Mohd Khamil bin Jamil, 57, a Malaysian, was appointed to the
Board on 4 July 2011 as a Non-Independent Non-Executive Director and re-designated
as Non-Independent Non-Executive Chairman on 15 July 2011. He is also the
Chairman of the Board Nomination and Remuneration Committee.
Tan Sri Dato’ Sri Haji Mohd Khamil holds a Bachelor of Laws (Honours) from the
University of London and is a Barrister-at-Law at Gray’s Inn, England. He was called
to the English Bar in 1983.
Tan Sri Dato’ Sri Haji Mohd Khamil began his executive career at Bank Bumiputra
Malaysia Berhad in August 1980, where he served until December 1989. He was
called to the Malaysian Bar in September 1990, and was a practising partner of
several legal firms before venturing into business in 2001.
Tan Sri Dato’ Sri Haji Mohd Khamil is currently the Group Managing Director of DRBHICOM Berhad, Executive Chairman of Proton Holdings Berhad and Chairman of Lotus
Group International Limited and Group Lotus Plc. He is a Director of Etika Strategi
Sdn Bhd, the holding company of DRB-HICOM Berhad in which he has a 10%
shareholding. He also holds directorships in several subsidiaries and associate
companies of DRB-HICOM Berhad in addition to other private limited companies.
48
Tan Sri Dato’ Sri Haji Mohd Khamil does not have any family relationship with any
director and/or substantial shareholder of the Company or any conflict of interest with
the Company. He has not been convicted of any offence within the past 10 years.
Tan Sri Dato’ Sri Haji Mohd Khamil attended six (6) out of seven (7) Board meetings
held during the financial year under review.
Particulars of directorships in other public companies:
–
–
–
–
–
–
DRB-HICOM Berhad (Group Managing Director)
Proton Holdings Berhad (Executive Chairman)
Edaran Otomobil Nasional Berhad
HICOM Berhad
HICOM Holdings Berhad
Horsedale Development Berhad
www.pos.com.my
Dato’ Ibrahim Mahaludin bin Puteh, 61, a Malaysian, was appointed to the Board on
22 August 2007 as a Non-Independent Non-Executive Director. On 25 February 2009,
he was re-designated as an Independent Non-Executive Director and thereafter, on
19 June 2013, he was further re-designated as Senior Independent Non-Executive
Director. Dato’ Ibrahim is a member of the Board Nomination and Remuneration
Committee, the Audit Committee, the Tender Board Committee and the Information
and Communication Technology Committee.
Dato’ Ibrahim does not have any family relationship with any director and/or substantial
shareholder of the Company or any conflict of interest with the Company. He has not
been convicted of any offence within the past 10 years.
Dato’ Ibrahim attended six (6) out of seven (7) Board meetings held during the
financial year under review.
Particulars of directorships in other public companies in Malaysia:
He holds a Bachelor of Arts (Honours) from the University of Malaya and a Master of
Business Administration from the Manchester Business School, University of Manchester,
United Kingdom.
– Computer Forms (Malaysia) Berhad (Chairman)
Dato’ Ibrahim is the Chairman of Indah Water Konsortium Sdn Bhd, a position he has
held since 1 September 2009. He is also the Chairman of Computer Forms (Malaysia)
Berhad since 1 December 2008, and the former Chairman of Syarikat Prasarana Negara
Berhad. Prior to that, Dato’ Ibrahim had served in various divisions at the Ministry of
Finance since 1974 including as Senior Adviser to the Executive Director for South East
Asia at the World Bank Group in Washington D.C. His last post prior to retirement in
2008 was Deputy Secretary General (Policy) at the Ministry of Finance.
49
Pos Malaysia Berhad
Annual Report 2013
Board of Directors Profile (cont’d.)
Datuk Mohamed Razeek, 55, a Malaysian, was appointed to the Board on 24 April
2013 as a Non-Independent Non-Executive Director. He is a member of the Audit
Committee and the Tender Board Committee.
Datuk Mohamed Razeek holds a Bachelor of Science (Civil Engineering) from the
University of The South Bank, United Kingdom and is a member of the Institute of
Engineers, Malaysia.
Datuk Mohamed Razeek began his career in an engineering consulting firm in London
in the late 1970s. Upon returning to Kuala Lumpur in the 1980s, he joined a local
engineering consulting firm and was involved in the construction of the UBN Towers,
a development by Peremba-Kuok Brothers. In 1985, he joined Sime UEP Berhad
before moving on to Land & General Group of Companies in 1991. Various achievements
led to his appointment as an Executive Director of Land & General Berhad in 1999.
He joined Eastern & Oriental Property Development Berhad as a Project Director in
September 2003 prior to joining Damac Properties in Dubai as its Senior Vice
President in August 2008. Datuk Mohamed Razeek subsequently joined Malaysian
Resources Corporation Berhad as its Chief Operating Officer in June 2009 and was
promoted to the post of Chief Executive Officer on 1 December 2009. He is currently
DRB-HICOM Berhad’s Chief Operating Officer, Services & Properties, since his
appointment on 1 September 2012.
Datuk Mohamed Razeek does not have any family relationship with any director and/
or substantial shareholder of the Company or any conflict of interest with the Company.
He has not been convicted of any offence within the past 10 years.
Datuk Mohamed Razeek was appointed to the Board after the financial year under review.
Hence, he did not attend any Board meeting during the financial year under review.
Datuk Razeek does not hold directorships in any other public company.
50
www.pos.com.my
Encik Abdul Hamid bin Sh Mohamed, 48, a Malaysian, was appointed to the Board
on 1 March 2013 as an Independent Non-Executive Director. He is the Chairman of
the Audit Committe and a member of the Board Nomination and Remuneration
Committee and the Tender Board Committee.
Encik Abdul Hamid is a Fellow of the Association of Chartered Certified Accountants.
He started his career in the accounting firm Messrs Lim Ali & Co./Arthur Young before
moving on to merchant banking with Bumiputra Merchant Bankers Berhad. He then
joined the Amanah Capital Malaysia Berhad Group, an investment banking and finance
group, where he eventually led the corporate planning and finance functions. In 1998,
he left for the Kuala Lumpur Stock Exchange (now known as Bursa Malaysia Securities
Berhad) as Senior Vice President in charge of the Strategic Planning & International
Affairs Division and was promoted to Deputy President (Strategy and Development) in
2002. He was then re-designated as Chief Financial Officer in 2003. Encik Abdul
Hamid is currently an Executive Director of Symphony House Berhad.
Encik Abdul Hamid does not have any family relationship with any director and/or
substantial shareholder of the Company or any conflict of interest with the Company.
Encik Abdul Hamid attended the first and only Board meeting held subsequent to his
appointment during the financial period under review.
–
–
–
–
–
Symphony House Bhd
SILK Holdings Berhad
MMC Corporation Berhad
Scomi Engineering Bhd
Kuwait Finance House (Labuan) Berhad
51
Pos Malaysia Berhad
Annual Report 2013
Datuk Puteh Rukiah binti Abd. Majid, 60, a Malaysian, was appointed to the Board
on 7 June 2013 as an Independent Non-Executive Director. She is a member of the
Audit Committee, Board Nomination and Remuneration Committee and Information
and Communication Technology Committee.
Datuk Puteh Rukiah holds a Bachelor of Economics (Honours) from the University of
Malaya and a Master of Economics from the Western Michigan University, United
States of America.
She has held senior positions in various Government departments since 1976,
including being appointed the Deputy Under Secretary of the Investment, Privatisation
and Public Enterprise Division of the Ministry of Finance in 2000, and subsequently,
the Under Secretary of Investment and Privatisation and Minister of Finance Incorporated
Division of the Ministry of Finance. From 2006 until March 2011, she was the Deputy
Secretary General (Systems and Controls) at the Ministry of Finance.
52
Datuk Puteh Rukiah does not have any family relationship with any director and/or
She has not been convicted of any offence within the past 10 years.
Datuk Puteh Rukiah was appointed to the Board after the financial year under review.
Hence, she did not attend any Board meeting during the financial year under review.
– Gas Malaysia Berhad
– Zelan Berhad
– Pelaburan Hartanah Berhad
www.pos.com.my
Dato’ Sri Che Khalib bin Mohamad Noh, 48, a Malaysian, was appointed to the Board
on 17 August 2012 as a Non-Independent Non-Executive Director. On 1 July 2013,
Dato’ Sri Che Khalib was re-designated as an Independent Non-Executive Director. He
is the Chairman of the Information and Communication Technology Committee.
Dato’ Sri Che Khalib is a fellow of the Association of Chartered Certified Accountants
(United Kingdom) and a Chartered Accountant (Malaysia).
Dato’ Sri Che Khalib began his career as an audit assistant with Messrs Ernst & Young
in 1989 and later joined Bumiputra Merchant Bankers Berhad. Between 1992 and
1999, he served in several companies within the Renong Group including Projek
Lebuhraya Utara Selatan (PLUS), HBN Management Services Sdn. Bhd., Renong
Overseas Corporation Sdn. Bhd. and Marak Unggul Sdn. Bhd., the consortium
responsible for the management of Keretapi Tanah Melayu Berhad. In June 1999, he
joined Ranhill Utilities Berhad as its Chief Executive Officer. He then assumed the
position of Managing Director and Chief Executive Officer of KUB Malaysia Berhad
prior to his appointment as the President/Chief Executive Officer of Tenaga Nasional
Berhad on 1 July 2004 where he served for 8 years. He later joined DRB-HICOM
Berhad as Chief Operating Officer, Finance, Strategy and Planning in July 2012.
Effective 1 July 2013, Dato’ Sri Che Khalib was appointed Managing Director of MMC
Corporation Berhad.
Dato’ Sri Che Khalib was previously a member of the Board and the Executive
Committee of Khazanah Nasional Berhad from 2000 until 2004. He also served as a
Board member within the United Engineers Malaysia Berhad Group of Companies and
Bank Industri & Teknologi Malaysia Berhad.
Dato’ Sri Che Khalib does not have any family relationship with any director and/or
Dato’ Sri Che Khalib attended all five (5) Board meetings held subsequent to his
appointment during the financial year under review.
– MMC Corporation Berhad (Managing Director)
– Bank Muamalat Malaysia Berhad
53
Pos Malaysia Berhad
Annual Report 2013
Puan Eshah binti Meor Suleiman, 58, a Malaysian, was appointed to the Board on 25
February 2009 as a Non-Independent Non-Executive Director. She is the Chairperson
of the Tender Board Committee and a member of the Board Nomination and
Remuneration Committee.
Puan Eshah holds a Bachelor of Economics (Honours) from the University of Malaya
and a Master of Business Administration (Finance) from the Oklahoma City University,
United States of America.
She started her career in 1981 as an Assistant Director (Macro Economic Section) in
the Economic Planning Unit of the Prime Minister’s Department before serving as
Assistant Secretary at the Government Procurement Division, Ministry of Finance in the
middle of 1991. Puan Eshah later held various positions in the Ministry of Finance.
In September 2006, she was promoted to her current position as Under Secretary of
Investment, Minister of Finance (Incorporated) and Privatisation Division of the
Ministry of Finance Malaysia.
54
Puan Eshah does not have any family relationship with any director and/or substantial
shareholder of the Company or any conflict of interest with the Company. She has not
been convicted of any offence within the past 10 years.
Puan Eshah attended six (6) out of seven (7) Board meetings held during the financial
year under review.
–
–
–
–
Global Maritime Ventures Berhad
Telekom Malaysia Berhad (Alternate Director)
Malaysia Airports Holdings Berhad
Malaysian Airline System Berhad (Alternate Director)
www.pos.com.my
Group CEO’s Profile
Dato’ Iskandar Mizal bin Mahmood
Dato’ Iskandar Mizal bin Mahmood, 46, a Malaysian, was appointed Group Chief
Executive Officer of the Company on 15 July 2013.
He holds a Bachelor of Science in Business Administration (Accounting) from Boston
University, Massachusetts, United States of America.
Dato’ Iskandar was the founding Chief Executive Officer (CEO) and a Board member
of Malaysian Biotechnology Corporation Sdn Bhd (BiotechCorp), which is the Malaysian
Government’s professional agency spearheading the development of the country’s
biotechnology industry. He was also the Chairman of the Board of Malaysian Bio-XCell
Sdn Bhd, a 60% subsidiary of BiotechCorp that is undertaking the development of a
comprehensive biotechnology ecosystem located in Iskandar Malaysia, Johor. Under
Dato’ Iskandar’s leadership, BiotechCorp has grown to be one of the leading
biotechnology industry developmental organisations within the region. Prior to his
appointment to BiotechCorp, Dato’ Iskandar was the CEO and a Board member of
Malaysian Technology Development Corporation Sdn Bhd (MTDC), Malaysia’s integrated
venture capital company. Prior to that, he was with Malaysia Airports Holdings Berhad
holding several senior management positions and portfolios. Dato’ Iskandar had also
served with several investment banking institutions including CIMB Group and
Bumiputra Merchant Bankers.
Dato’ Iskandar was the Managing Director and CEO of Manipal Education Malaysia Sdn
Bhd (MEM) for approximately 2 years before his appointment as Group Chief Executive
Officer of the Company. Under his stewardship, MEM obtained a full university license
to operate Manipal International University.
Dato’ Iskandar does not have any family relationship with any director and/or
substantial shareholder of the Company or any conflict of interest in any business
arrangement involving the Company. He has not been convicted of any offence within
the past 10 years.
– Globetronics Technology Berhad
55
Pos Malaysia Berhad
Annual Report 2013
Leadership Team
1. Dato’ Sabrina Albakri Abu Bakar
Group Head, Legal, Secretarial & Regulatory Counsel
2. Fikri Ahmad
Group Head, Human Resource
3. Ahmad Faisal Murad
Group Chief Financial Officer
1
3
1
1. Dato’ Iskandar Mizal Mahmood
2. Mohd Shukrie Mohd Salleh
Group Chief Operating Officer
3. Nik Ahmad Fauzan Nik Mohamed
56
2
2
3
www.pos.com.my
4
5
1. Chum Choy Han
Chief Operating Officer, International Business Solutions (IBS)
2. Nor Azizan Tarja
Chief Operating Officer, Supply Chain Solutions (SCS)
3. Bahaman Kamaruzzaman
Chief Operating Officer, Digital Solutions (DS)
Chief Executive Officer, Datapos Sdn Bhd
4. Dato’ Mearia Hamzah
Chief Operating Officer, One-Stop Solutions (OSS)
5. Hasnul Haniff
1
1
2
Chief Operating Officer, Communications and Distribution Solutions (CDS)
2
3
4
5
3
1. Mohd Amin Nallah
Group Head, Risk Management
2. Mariyani Awang
Group Head, Corporate Compliance
3. Balqais Yusoff
Group Head, Corporate Planning
4. Zaidi Hussain
Group Head, Program Management Office
5. Firhart Arshad
Covering Group Head, Strategic Procurement
57
Pos Malaysia Berhad
Annual Report 2013
Leadership Team (cont’d.)
1. Radin Asrul Adza Radin Soenarno
Chief Information Officer, Information & Communication Technology (ICT)
2. Wan Mahadzer Isllah Bin Wan Puteh
Group Head, Revenue Assurance
3. Dato Rohaiza Hashim
Group Head, Corporate Communications & Customer Care
4. Harleim Mohd Nor
Covering Group Head Internal Audit
1
1
2
3
4
1. Amir Suhaimi Hassan
Chief Operating Officer, Digicert Sdn Bhd
2. Raja Nor Izah Raja Jaafar
Group Head, Sales and Marketing
3. Mohd Azri Hashim
Covering Group Head, Transport Management
4. Hisham Zuhdi
Covering Group Head, Facilities Management
5. Mohd Yusri Dollah
58
Group Head, Transformation Management Office, (TMO)
5
2
3
4
Pos Malaysia Berhad
Annual Report 2013
Corporate Responsibility Statement
At the most basic level, Pos Malaysia is committed to
enhance the life of Malaysians by offering high quality
products and services that are convenient, reliable and
fulfill their various needs. These efforts are supported by a
series of initiatives to uplift the marginalised and empower
the disenfranchised, ultimately contributing towards national
development.
As a responsible organisation, we maintain the highest level of integrity in our dealings
with all our stakeholders, from our employees to our regulators, business partners,
customers and the society at large. Together with initiatives aimed at minimising the
environmental impact of our business, we work towards achieving the triple bottom
line objectives comprising social, environmental and financial profits.
Our Corporate Responsibility efforts will be described in the following pages, categorised
in the areas of Community, Workplace, Marketplace and the Environment.
Community
Pos Malaysia supports the Government in various nation-building initiatives, most
significantly in ensuring that all Malaysians have access to efficient and affordable
postal services. Furthermore, to empower the nation, we invest in the provision of
quality education to youths.
60
www.pos.com.my
National Development
Education
Our most critical role is to provide services to Malaysians across the length and
breadth of the country. We therefore embarked on the Government-funded Postal
Transformation Programme for Sabah and Sarawak (PTPSS) in 2010 and completed
the first phase in November 2012 with the appointment of 600 Community Postmen
and 1,000 Postal Community Representatives as well as the deployment of 10
Pos-on-Wheels in the two states.
Pos Malaysia contributes to more equitable education in the country through our school
adoption programme where by we upgraded the facilities in the schools, as well as
support towards improving the students’ academic achievements and character-building.
We began this initiative, by adopting two schools in Penang – Sekolah Menengah
Kebangsaan Sungai Acheh, Nibong Tebal and Sekolah Kebangsaan Kuala Perai,
Butterworth – for a period of three years. By the time this programme ended in 2011,
the two schools had recorded improvements in their national examination results.
Subsequent to this, KPKK gave the approval for us to carry out Phase II of the PTPSS,
which commenced in November 2012.
In March 2013, we were appointed by Yayasan Kebajikan Negara Malaysia to serve as
the payment agent to merchants involved in the Karisma@Hati Rakyat (K@HR)
programme under which low-income families were given vouchers to purchase
groceries. We have also offered Yayasan Waqaf Anak Yatim atau Miskin Malaysia
(YAWATIM) the use of our outlets for the public to channel waqaf funds towards the
provision of education to orphans and the underprivileged children.
We were therefore encouraged to continue with the programme, and adopted another
two schools, namely Sekolah Kebangsaan Tanjung Agas in Pekan, Pahang and Sekolah
Kebangsaan Pekan Pagoh in Muar, Johor. To inspire the students to excel, we
organised motivational camps and talks, as well as academic trips to Kuala Lumpur.
We also encouraged the use of Information Technology in learning by contributing a
desktop to each school.
Supporting the Government’s initiatives to uplift the marginalised, we collaborated with
KPKK to upgrade several Orang Asli villages in Jelebu, Negeri Sembilan. We also took
part in the My Beautiful Malaysia programme by contributing towards beach cleaning
efforts at Pantai Nenasi in Pekan, Pahang.
61
Pos Malaysia Berhad
Annual Report 2013
Corporate Responsibility Statement (cont’d.)
Supporting Orphans
Projek Kami Prihatin
Pos Malaysia has embarked on an Orphanage Adoption Programme through which we
aim to enhance the facilities of the homes, improve the educational achievement of
the orphans as well as contribute towards their personal development. Two orphanages
have been selected based on their needs, namely Rumah Limpahan Kasih in Puchong
and Rumah Sentuhan Budi in Kuala Lumpur. Through our programme, we arranged
motivational camps for the children, and organised various activities at their homes
such as berbuka puasa and gotong royong sessions. We also took the children shopping
for school uniforms.
We positively encourage our employees to contribute to the needy and have set up the
Projek Kami Prihatin to serve as a channel for them to do so. Through this programme,
staff can contribute basic essentials such as dried foods, diapers, clothes, school
paraphernalia as well as cash to the underprivileged throughout the year.
62
www.pos.com.my
Workplace
We aim to create a stimulating work environment that motivates our employees to realise their true potentials as well as fostering a sense of unity and belonging to Pos Malaysia.
Training & Professional Development
In order to build our human capital and attain a high level of performance to sustain
future growth, we provide continuous and strategic training to our people. New recruits
partake in induction programme through which they understand the culture and ethos
of Pos Malaysia as well as our business strategies and objectives. Subsequently, they
are provided with customised training at our own training centre, Institut Latihan Pos
(ILP), to equip them with the essential skills and knowledge to carry out their current
functions while preparing them for career advancement.
Since 2012, we have also been implementing the HICOM Management System (HMS),
which serves to improve our relationship management while streamlining our business
operations and allowing for cross-fertilisation of our human capital. Senior managers
from Pos Malaysia are posted to other companies within the DRB-HICOM Group of
Companies, and vice versa, for greater experience and invaluable exposure, thus
enhancing their professionalism and personal growth.
Staff Engagement
We believe it is important for our more than 16,000 workforce to understand and
embrace Pos Malaysia’s vision and values so as to unite in a single, powerful entity,
driven to achieve our shared goals. Having embarked on our transformation journey, it
is critical that our people fully understand the destination and are empowered to
provide the necessary support to ensure constant improvements are made throughout
the value chain.
Towards this end, a series of quarterly briefings, led by the Group Chief Executive
Officer were organised, offering a two-way platform to share the Company’s performance
and aspirations. At the same time, walkabout and town hall sessions were conducted
to meet and brief our staff countrywide on our business transformation plan.
At the operations level, we encourage our staff to be creative and offer ideas on how
work processes can be improved, such as using recycled and made in Malaysia
products for cost efficiency and enhance the working environment. Many ideas were
put to test and given recognition during the annual Quality Convention.
To further strengthen unity, we organise staff related events such as company berbuka
puasa (breaking of fast) session, tarawikh prayers, sahur, Qiyamullail, Sinar Zohor and
Hari Raya Open House.
63
Pos Malaysia Berhad
Annual Report 2013
Corporate Responsibility Statement (cont’d.)
We realise that working together in community programmes strengthens the bonds
between staff while providing meaningful service to society. We therefore fully support
staff volunteerism through the Skuad Bencana Alam Pos Malaysia (SkuBA), which
provides a channel for our staff to lend a helping hand to victims of natural disasters.
Staff selected for the programme were sent for disaster rescue training conducted by
the Malaysian Civil Defense Department (JPAM) to enhance teamwork as well as to be
equipped with the necessary skills and knowledge that will enable them to help the
victims in times of crisis.
Marketplace
Pos Malaysia is committed to maintaining our reputation as a professional organisation
that upholds the highest level of integrity and corporate governance. We respect and
value our customers, regulators, business partners and shareholders, and invest in
building strong relationships with each stakeholder group.
One of Pos Malaysia’s core values, Customer Centricity, places emphasis on the
delivery of a consistently high standard of products and services. By paying attention
to the specific needs of our individual and corporate clients, we help them increase
their market share and profit margins. For instance, PosLaju prepaid envelopes and
boxes have helped many online business enterprises generate greater sales volume and
increase their revenues via more efficient product delivery to their customers.
Other core values of Decorum, Excellence, Innovation, Integrity, Accountability and
Timeliness serve as a solid foundation to ensure that we remain as a trusted and
reliable partner to all our stakeholders. In strengthening our stakeholder relationships,
we engage our investors, regulators, business partners, and the media during strategic
dialogues, investors’ briefings and our Annual General Meetings, while also providing
key financial and operational information on our website and in our Annual Reports.
We also host our corporate clients and the media at social events such as our Hari
Raya Open House; while engaging on a personal level with our customers at
Permodalan Nasional Berhad’s annual Minggu Saham Amanah Malaysia as well as our
own annual Stamp Week and World Postal Day celebrations.
Family Support
Our programmes and initiatives are not limited to staff, but also extended to their
families. Through the Pos Malaysia Education and Assistance Scheme (PAES), 68
children of Pos Malaysia staff were offered the opportunity to further their studies at
the Lim Kok Wing University. Another five children were selected to further their
studies at the International College of Automotive (ICAM) in Pekan, Pahang.
64
We are committed to solving any grievance that may arise between a staff and the
Company, or a third party and the Company, as equitably and quickly as possible. Our
staff are informed as to how and where to channel their grievances, while line
managers, Heads of Departments and representatives from Human Resources/Industrial
Relations are trained to handle grievances brought to their attention by the staff. A
secured whistleblowing channel is available for staff to report complaints to the
management, which keeps the identity of the staff confidential. Their consent is sought
should there be a need to disclose their identity for investigation purposes.
www.pos.com.my
Environment
We are conscious of the urgent need to protect and enhance the environment for its own sake, as well as to minimise our carbon footprint in light of climate change issues.
While taking various measures to reduce our environmental impact in the workplace, we are also educating the younger generation on the importance of caring for the environment
to safeguard national and global sustainability.
Reducing our Carbon Footprint
Wherever possible, we minimise use of fuel-based energy in order to reduce our carbon
emissions. We advocate energy-saving practices in our premises such as switching off
lights as well as electronic and electrical devices when these are not in use.
Other environment-friendly initiatives include reducing the use of non-recyclable
materials in our products and saving on paper in internal communication.
Educating Youth
We believe that creating awareness of environmental issues in the young will go a long
way towards nurturing a sustainable nation as these youth will take over in shaping
the country as policy and decision makers in the not too distant future.
In FY 2013, we took 80 children of Pos Malaysia staff to the Padang Kemunting
Turtle Conservation Centre in Pengkalan Balak, Melaka, where they were exposed to
the turtle conservation initiatives by the Department of Fisheries, Malaysia.
We recognise that being responsible means being receptive to changes in the environment
and adapting ourselves to meet these challenges as time goes by. Our Corporate
Responsibility initiatives are therefore always a work in progress, and we aim to constantly
improve on them to remain a responsible, responsive and respectful organisation.
65
Pos Malaysia Berhad
Annual Report 2013
Corporate Governance Statement
The Board of Directors (“Board”) and Management of Pos Malaysia Berhad (“Pos Malaysia” or “the Company”), remain
committed to upholding and continuously improving good corporate governance practices throughout the Pos Malaysia Group
of Companies (“Group”) for the protection and creation of greater shareholder and other stakeholder value and for maintaining
integrity, trust and confidence in the Company.
The foundation for good governance lies in having an effective Board in place. The Board realises that to be effective, it
and its members must continuously perform and not just conform. The Board subscribes to the belief that the quest for
standards of best practice represents a continuous journey.
Pos Malaysia has considered the Recommendations made under each Principle set out in the Malaysian Code on Corporate
Governance 2012 (“MCCG 2012”) and the Corporate Governance Guide issued by Bursa Malaysia Berhad.
The Board is now pleased to report to the shareholders in greater detail on the manner in which the Group has applied
the Principles and Recommendations of the MCCG 2012 and/or propose to apply them.
A. Board of Directors
Principal Responsibilities of the Board
The roles and responsibilities of the Board are clearly set out in the Pos Malaysia
Board Policy Manual. The duties, responsibilities, powers and functions of the Board
are governed by the Articles of Association of the Company (“Company Articles”), the
Companies Act 1965 and Companies (Amendment) Act 2007 (collectively the
“Companies Act”), the Main Market Listing Requirements of Bursa Malaysia Securities
Berhad (“MMLR of Bursa Securities”) and other relevant laws, rules and regulatory
guidelines that are in force. The Pos Malaysia Board Policy Manual assists the
Directors to better appreciate their roles and responsibilities, thus ensuring the longterm objectives of the Group are met.
66
The functions and power delegated by the Board to the Management to manage the
daily business and operations of the Group are spelt out in the Limits of Authority
(“LOA”) adopted throughout the Group. The schedule of matters reserved for the
collective decision of the Board is also enshrined in the LOA.
The Board is responsible for setting the Group’s strategic goals and direction and
overseeing the performance and management of the business and affairs of the Group.
www.pos.com.my
The principal responsibilities of the Board are set out in the Board Policy Manual and
the Board carries them out accordingly as follows:
(iii) Adopt performance measures to monitor implementation and performance of the
Group’s objectives, strategies, action plans and policies.
(i) Ensure that the Group’s objectives are clearly established and that strategic plans
are in place to achieve those objectives.
An Annual Management Plan (“AMP”) comprising the Group’s Business Plan and
Annual Budget is formulated and approved by the Board on an annual basis to
monitor the Group’s annual performance towards achieving the 5-year Strategic
Plan. The AMP is reviewed by the Board through a Mid-Term Performance Review
conducted at the end of the first half of the financial year to review the
Company’s half-year performance and determine if there is a need for any revision
to the AMP.
The Board is responsible for setting the Group’s strategic goals and direction
and overseeing the performance and management of the business and affairs of
the Group.
In 2012, the Board established and endorsed a 5-year Strategic Plan to define
the path and direction of Pos Malaysia for the next five (5) years. The 5-year
Strategic Plan states the Company’s end-game model to become a one-stop
provider of communications, logistics, financial services and supply chain
solutions. Premised on five (5) Strategic Trusts themed “SCORE”, the Board has
established broad based strategies to facilitate business growth and achieve
operational efficiency, supported by strong capabilities and customer driven
strategies which are envisaged to transcend into a dynamic high-performing and
modern Pos Malaysia. The 5-year Strategic Plan follows from an earlier
Transformation Masterplan which focused primarily on enhancing internal
capabilities and processes.
(ii) Establish policies to strengthen the Group’s performance, and ensure that
Management proactively seeks to build the business through innovation, initiative,
technology, new products and the development of business capital.
As a fundamental part of discharging the Board’s responsibility to strengthen the
Group’s performance, the Board continuously acts to improve and refine
Management practices. For this purpose, the Board ensures that the Company has
adequate policies in place to ensure consistency in Management practice. The
Board and Management also periodically assess the adequacy of existing policies
within the Group and adopt new ones and/or improve the existing policies in order
to strengthen the Group’s performance.
The Board also approves a set of Key Performance Indicators (“Corporate KPI”) for
the achievement of the other financial targets and initiatives as set out in the AMP.
The Corporate KPIs in turn becomes the KPIs of the Company’s Group Chief
Executive Officer (“GCEO”). The KPIs of the GCEO are then cascaded to the Senior
Management team members and the rest of the employees accordingly. The Board
also monitors the performance of the Company against the AMP through a
Management Status Report which is tabled to the Board once every quarter. After
the closing of the financial year, the performance of the Company against the
Corporate KPIs is assessed and an appropriate performance rating is accorded.
(iv) Oversee the conduct of the Group’s business to evaluate whether the business is
being properly managed.
In assisting the Board to evaluate whether the business of the Company is being
properly managed, the Audit Committee is tasked to assess the Group’s current
processes, determine their adequacy and recommend improvements, if necessary.
The Company’s Internal Audit Department (“IAD”) assists and supports the Audit
Committee in undertaking this responsibility.
67
Pos Malaysia Berhad
Annual Report 2013
Corporate Governance Statement (cont’d.)
(v) Ensure that the Group has appropriate business and enterprise-wide risk
management processes, including an adequate control environment based on
internal control systems, management information systems and systems for
compliance with applicable laws, rules and regulations.
Pos Malaysia has a dedicated Risk Management Department which is entrusted
with the task of monitoring the Group’s risks. A Risk Management Report which
highlights the Company’s Risk Register and Top Key Risks is tabled to the Audit
Committee and the Board for deliberation on a quarterly basis.
The IAD also audits the internal control system of the Group and presents its
Audit Reports to the Audit Committee on a quarterly basis highlighting any breach
of internal controls and other areas of weakness.
(vi) Appoint Board Committees to address specific issues, consider recommendations
of the Board Committees and discuss problems and reservations arising from the
Committees’ deliberations.
The Board has established four (4) Board Committees, namely the Audit
Committee, Board Nomination and Remuneration Committee (“BNRC”), Tender
Board Committee and Information and Communication Technology Committee, to
carry out the respective responsibilities assigned to them. The composition and
Terms of Reference of these Board Committees are as stated in the later part of
this Statement.
(vii) Ensure that the statutory accounts of the Group are fairly stated and conform with
the relevant regulations including acceptable accounting policies.
The Audit Committee is delegated with the responsibility to ensure that the
Group’s statutory accounts are fairly stated and conform with the relevant
regulations and acceptable accounting policies. In carrying out such responsibility,
the Audit Committee places focus particularly on major accounting policy
changes, significant and unusual events, significant adjustments resulting from
audit, going concern assumptions and compliance with accounting standards and
other legal requirements.
68
(viii)Ensure that an appropriate succession planning mechanism is in place for
members of the Board and Senior Management positions.
In determining the succession planning for Board members, the Board is guided
by the recommendation made under the MCCG 2012 and the MMLR of Bursa
Securities which stipulates that each Director should have the character,
experience, integrity, competence and time to effectively discharge his/her role as
a Director, taking into account the future needs and way forward for the Company.
When carrying out the annual assessment, the BNRC sets out the criteria required
for the Board in terms of the type of experience and competency required for
Board members to realise the Vision and Mission of the Company. The BNRC
would then determine if there are any gaps within the Board, and if need be,
propose the appointment of new Directors with the required skills sets.
The succession planning for Senior Management positions is determined by a
structured process led by the Human Resources Department, which is then
endorsed by the GCEO. However, the succession planning for the Group Chief
Operating Officer, the Chief Operating Officers who are Heads of Business Clusters,
the Group Chief Financial Officer and the Group Head of Corporate Services
(collectively “Chief Level Officers”) is deliberated by the BNRC who then makes the
necessary recommendations to the Board for consideration and approval.
(ix) Ensure that the Group adheres to high standards of ethics and corporate
behaviour including transparency in the conduct of business.
The Corporate Values, Whistle Blowing Policy & Procedures and Integrity Pact under
the Procurement Policy are currently in place to help inculcate good corporate and
ethical behaviour in the conduct of the Group and its employees. In order to ensure
a secured channel of communication for whistleblowing, the Board has appointed
the Head of Internal Audit and Company Secretary/Head of Legal as the Group’s
authorised representatives to receive whistleblowing reports.
The Board has also agreed to adopt the Code of Ethics for Directors issued by the
Companies Commission of Malaysia.
www.pos.com.my
(x) Ensure that an appropriate public relations and communications programme, and
an investor relations programme are in place.
The Group adopted the Communications Policy and Investor Relations Policy in
line with the best practices laid down in the Corporate Disclosure Guide issued
by Bursa Malaysia Securities Berhad (“Bursa Securities”) which governs the
communications activities externally and internally. The Communications Policy is
extended to cover Media Policy (Press, Broadcast and Online), Corporate
Advertising Policy, Internal Communications Policy, Email Communications Policy,
Corporate Social Responsibility Policy and Donation and Sponsorship Policy.
(xi) Ensure that there is a schedule of matters reserved for collective decision of the
Board.
The schedule of matters reserved for the collective decision of the Board is set
out in the Board Policy Manual and the LOA.
Board Balance and Composition
The Company Articles stipulate that the Board shall not comprise less than two (2) nor
more than twelve (12) members. The Board currently consists of seven (7) members,
comprising a Non-Independent Non-Executive Chairman, two (2) Non-Independent NonExecutive Directors and four (4) Independent Non-Executive Directors. The Company has
complied with the minimum compliance level set under the MMLR of Bursa Securities,
which requires one-third of the Board to consist of Independent Directors. The Company
has also complied with the recommendation under the MCCG 2012, which stipulates
that the Board should comprise a majority of Independent Directors where the Chairman
of the Board is not an Independent Director.
In support of the Government of Malaysia’s policy to have 30% women participation in
decision making positions by 2016, and in meeting the recommendation of the MCCG
2012 on gender diversity, the Board has appointed Datuk Puteh Rukiah binti Abd. Majid
as an Independent Non-Executive Director on 7 June 2013. The other lady Director who
has been on the Board since 2009 is Puan Eshah binti Meor Suleiman, a NonIndependent Non-Executive Director who represents the interests of the Special
Shareholder, namely the Minister of Finance (Incorporated).
The Board, through the BNRC, will also take into account the Directors’ varied skills
and breadth of experience to ensure they remain relevant and important for an effective
management of the Group’s business. Details of the Directors’ skills and experience are
outlined in the Board of Directors’ profiles contained in this Annual Report.
There is a clear separation of responsibilities between the Chairman and the GCEO and
a balance of power is maintained in the Company so that no one individual has
unfettered powers of decision.
The Chairman of the Board is responsible for representing the Board to the shareholders.
The Chairman is responsible for ensuring the integrity and effectiveness of the
governance process of the Board and consults the Board promptly over any matter that
gives him cause for concern. The Chairman acts as a facilitator at Board meetings to
ensure that no Board member, whether executive or non-executive, dominates the
discussion. The Chairman also ensures that appropriate discussions take place and that
relevant opinions among Board members are forthcoming. The Chairman further ensures
that discussions result in logical and understandable outcomes, which will lead to
appropriate and considered decisions by the Board.
The overall business and day-to-day operations of the Group are managed by the GCEO
who is not a Board member. The GCEO is accountable to the Board for the overall
organisation, management and staffing of the Group and for its procedures in financial
and operational matters, including conduct and discipline. The authority limits of the
GCEO are enshrined in the Company’s LOA duly approved by the Board.
Dato’ Haji Khalid bin Abdol Rahman (“Dato’ Khalid”) was the GCEO of Pos Malaysia for
the period from 1 January 2012 to 1 February 2013. Following the cessation of Dato’
Khalid as GCEO, Dato’ Iskandar Mizal bin Mahmood (“Dato’ Iskandar”) has been
appointed the Company’s new GCEO with effect from 15 July 2013. The profile of Dato’
Iskandar is contained in this Annual Report. During the absence of a GCEO, from 1
February 2013 to 14 July 2013, Encik Mohd Shukrie bin Mohd Salleh, Group Chief
Operating Officer of Pos Malaysia was appointed Covering GCEO.
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Pos Malaysia Berhad
Annual Report 2013
The four (4) Independent Non-Executive Directors of the Company, namely Dato’
Ibrahim Mahaludin bin Puteh, Dato’ Sri Che Khalib bin Mohamad Noh, Datuk Puteh
Rukiah binti Abd. Majid and Encik Abdul Hamid bin Sh. Mohamed, are independent
from Management and are able to exercise independent judgement and participate
positively in all the Board’s deliberations. They also play a pivotal role in the provision
of unbiased and independent views, advice and judgement as well as safeguard the
interests of other parties such as minority shareholders and other stakeholders.
An assessment on independence was carried out by the Independent Directors by way
of a self-assessment, using the criteria of Independence prescribed under the MMLR of
Bursa Securities. The BNRC then reviewed the same and agreed that the Independent
Directors are able to exercise independent and objective judgment in carrying out their
duty as Independent Directors. This pronouncement was subsequently endorsed by the
Board. All the Independent Non-Executive Directors have not breached the nine-year
tenure for Independent Directors, as recommended under the MCCG 2012.
Tan Sri Dato’ Sri Haji Mohd Khamil bin Jamil and Datuk Mohamed Razeek bin Md
Hussain Maricar are the nominee Directors of DRB-HICOM Berhad, the Company’s
largest shareholder on the Board. Dato’ Sri Che Khalib bin Mohamad Noh
(“Dato’ Sri Che Khalib”), who was earlier a nominee Director of DRB-HICOM Berhad,
was re-designated as Independent Director on 1 July 2013 pursuant to his resignation
as Chief Operating Officer of DRB-HICOM Berhad following his appointment as
Managing Director of MMC Corporation Berhad. Dato’ Sri Che Khalib’s re-designation
was approved by the Board as Dato’ Sri Che Khalib fulfills the independent criteria
under the MMLR of Bursa Securities and the Board was of the opinion that Dato’ Sri
Che Khalib was able to exercise independent and objective judgement.
Datuk Low Seng Kuan, who was the Senior Independent Director of Pos Malaysia,
resigned from the Board on 16 May 2013 following his appointment as a Cabinet
Minister of Malaysia. Upon Datuk Low Seng Kuan’s resignation, Dato’ Ibrahim
Mahaludin bin Puteh was re-designated as Senior Independent Non-Executive Director
of the Company, to whom concerns may be conveyed by shareholders and/or members
of the public. The Senior Independent Non-Executive Director represents the interests
of minority shareholders and the general public by exercising independent judgement
as well as promoting good governance practices within the Company and the Board.
70
Board Meetings and Supply of Information to the Board
During the financial year ended 31 March 2013 (“Period Under Review”), seven (7)
Board meetings were held and the attendance of the Directors at the meetings was as
follows:
No of meetings
attended during
the Period
Under Review
Percentage
6 out of 7
86%
6 out of 7
86%
6 out of 7
86%
(Appointed w.e.f. 17 August 2012)
5 out of 5
100%
(Appointed w.e.f 1 March 2013)
1 out of 1
100%
(Appointed w.e.f 24 April 2013)
N/A
N/A
(Appointed w.e.f 7 June 2013)
N/A
N/A
Director
Directors appointed after the Period Under Review
www.pos.com.my
Director
No of meetings
attended during
the Period
Under Review
Percentage
Directors during the Period Under Review who have resigned
Dato’ Krishnan a/l Chinapan
(Resigned w.e.f 24 October 2012)
2 out of 2
100%
Dato’ Lukman bin Ibrahim
(Resigned w.e.f 28 February 2013)
4 out of 5
80%
Datuk Low Seng Kuan
(Resigned w.e.f 16 May 2013)
6 out of 7
86%
Dato’ Wee Hoe Soon @ Gooi Hoe Soon
(Resigned w.e.f 7 June 2013)
6 out of 7
86%
A schedule for Board Meetings and Board Committee meetings set for a whole
financial year is prepared in advance and tabled to the Board for approval before the
commencement of a new financial year. Generally, the Board is scheduled to meet at
least once in every quarter with additional meetings convened as and when necessary.
The agenda for each Board and Board Committee meeting together with the relevant
papers and supporting documents relating to items on the agenda items are distributed
to Board members and/or Board Committee members at least five (5) business days
beforehand. This enables the Directors to prepare themselves for the meeting and to
obtain further information, if necessary, in order to be properly and adequately
informed before the meetings.
All Board deliberations including views of the Board members, Board decisions,
rationale for each decision, as well as clear actions to be taken by Management are
clearly and accurately recorded in the minutes. Relevant Board and Board Committee
decisions are also communicated to Management immediately after each meeting.
Board papers are prepared based on a standard format to ensure consistency in the
presentation of facts and to ensure adequate and relevant information are provided to
the Board. Each Board paper for approval states the objective of the proposal, provides
background information, the financial effects of the proposal, issues for consideration
including risks, other options for consideration, disclosure of interested Director or
major shareholder (if applicable), Management’s recommendations and action sought
from the Board. The GCEO and relevant Management members make presentations
on the papers to the Board at the meetings to further facilitate the Board in its
decision-making.
The quality of information received by the Board has a direct impact on the quality
of decisions made by the Board. In order to maintain high standards, at the end of
every meeting, the Board provides feedback to Management by rating the quality of
information provided in the papers and the quality by presentations prepared by
Management by filling out a Board Paper Evaluation Form. The feedback received from
the Board members helps Management in improving the quality of its Board papers
and presentations.
The Directors also have access to all information within the Group to the extent that
the information required is pertinent to the discharge of their duties as Directors and
is for the benefit of the Group. In addition, all Directors have access to the advice
and services of the Company Secretary. Any Director may also request to seek
independent professional advice should the need arise and this can be done through
the Board or the Management. The Company Secretary supports the Directors by
advising the Directors of their duties under the law, rules and regulations. The
Company Secretary also supports the Directors on procedural and regulatory matters
that affect the Directors. In an effort to ensure a high quality of services is maintained
by the Company Secretary, the Board members provide feedback on the Company
Secretary’s quality of services through an annual Internal Customer Satisfaction Survey,
which forms part of the Company Secretary’s Key Performance Indicator.
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Pos Malaysia Berhad
Annual Report 2013
Appointment of Board Members and GCEO
Board Effectiveness Assessment
One of the functions of the BNRC is to propose to the Board for its consideration
suitable candidates for appointment as Directors and GCEO of Pos Malaysia. When
considering new appointment(s), the BNRC takes into account the candidates’ skills,
knowledge, expertise, experience, professionalism and integrity. In the case of a
candidate for the position of an Independent Director, the BNRC would consider the
candidate’s ability to discharge such responsibilities/functions as expected of
Independent Directors.
The BNRC is tasked under its Terms of Reference with carrying out the necessary
evaluation of the effectiveness of the Board and Board Committees on an annual basis.
This includes ensuring that the Board has the appropriate mix of skills and experience
and discharges its duties effectively.
When considering the time commitment of each Director in discharging his/her
responsibilities, the BNRC considers the number of directorships (public listed and
private companies) the Director holds. This consideration is made when deliberating
the Director’s appointment and when conducting an annual assessment on the
Director’s performance. The Directors are also required to notify the Chairman of the
Board before accepting any other new Board appointment and his/her time commitment
expected under the said new appointment.
For the Period Under Review, as an effort to continuously monitor the Board’s
effectiveness, the BNRC had carried out an assessment on the Board as a whole, the
Board Committees and on each Director. The BNRC had also carried out an assessment
on the independence of each Independent Director in accordance with the criteria of
independence as stipulated under the MMLR of Bursa Securities in order to ensure
that the Independent Directors are capable of exercising their duties and judgement
independently. The results of the assessment as well as comments and suggestions
made thereon were deliberated by the BNRC and the necessary action plans for
improvement were thereafter proposed for consideration and approval by the Board.
Directors’ Training
As Pos Malaysia is licensed by Bank Negara Malaysia (“BNM”) under the Money
Services Business Act 2011 (“MSBA”) for its remittance business, all new appointment(s)
of Director(s) and GCEO are subject to the approval of BNM. As such, all Directors and
the GCEO must also fulfill the “fit and proper” test as prescribed by BNM.
Re-election of Directors
The Board recognises the importance of continuous
they stay abreast of the latest developments and
business environment and challenges. The training
necessary knowledge and skills to enable them to
discharge their duties effectively.
The Company Articles require all Directors to retire from office at least once in every
three (3) years at the Company’s Annual General Meeting (“AGM”) and at least onethird of the Directors are subject to retirement by rotation at each AGM where they
are then eligible for re-election by the shareholders.
All new Board members undergo an orientation programme to better understand the
business of the Group and all the Directors have also attended the Mandatory
Accreditation Programme. In addition, in-house training is organised for the Directors.
Each Director further stipulates the training he/she requires each year.
The profile of the Directors who are retiring and seeking re-election at the forthcoming
AGM are disclosed in the Board of Directors’ profile contained in this Annual Report.
Training programmes and/or forums attended by the Directors during the Period Under
Review were: The Malaysian Code on Corporate Governance 2012, Competition Act
2010, Insurance Insights, Chief Financial Officer Summit 2012, Updates on the Bursa
72
training for the Directors to ensure
changes in laws and regulations,
also equips the Directors with the
fulfill their responsibilities and to
www.pos.com.my
Malaysia Main Market Listing Requirements and Corporate Disclosure Guide, Corporate
Governance Blueprint and Malaysian Code on Corporate Governance 2012, Limited
Liability Partnership & Its Tax Facet, 3rd APAC Pricing Strategy Forum, Distinguished
Role Players of a Conference on Building Integrity in the Public and Private Sectors,
ACCG Conference, Bursa Malaysia Sustainability Training for Directors & Practitioners,
5th Annual Corporate Governance Summit, Khazanah Megatrends Forum 2012,
Refresher on Malaysian Financial Reporting Standards, MICPA Bursa Malaysia Business
Forum 2012, Look East Policy 30th Anniversary Symposium, DBS Vickers Pulse of
Asia Conference, Marshall Goldsmith Full Day Workshop and Bursa Malaysia
Sustainability Training For Directors and Practitioners.
Board Committees
In accordance with the Company Articles, the Board delegates certain responsibilities
to the Board Committees with clear Terms of Reference and scope of responsibilities.
There are currently four (4) Board Committees in place, namely the Audit Committee,
the BNRC, the Tender Board Committee and the Information and Communication
Technology Committee.
(I) Audit Committee
The Audit Committee comprises four (4) Non-Executive Directors, three (3) of
whom are Independent Directors. The members are as follows:
1. Encik Abdul Hamid bin Sh. Mohamed
(appointed Chairman w.e.f 21 May 2013)
(Chairman/Independent Non-Executive Director)
2. Dato’ Ibrahim Mahaludin bin Puteh
(Senior Independent Non-Executive Director)
3.
4.
(appointed w.e.f 10 May 2013)
(Non-Independent Non-Executive Director)
(appointed w.e.f 19 June 2013)
(Independent Non-Executive Director)
* Datuk Low Seng Kuan (ceased as Chairman following his resignation on
16 May 2013)
* Dato’ Wee Hoe Soon @ Gooi Hoe Soon (ceased as member following his
resignation on 7 June 2013)
* Dato’ Lukman bin Ibrahim (ceased as member following his resignation on
28 February 2013)
A majority of the Audit Committee members are financially literate and/or have
strong management experience. Encik Abdul Hamid bin Sh. Mohamed, who is
currently the Executive Director of Symphony House Berhad, is the new Chairman
of the Audit Committee. He is a Chartered Certified Accountant with the Association
of Chartered Certified Accountants and the former Chief Financial Officer of the
Kuala Lumpur Stock Exchange (now Bursa Securities). Dato’ Ibrahim Mahaludin bin
Puteh, on the other hand, has vast experience having served in various divisions at
the Ministry of Finance including as Senior Adviser to the Executive Director for
South East Asia at the World Bank Group in Washington D.C, United States of
America. Datuk Mohamed Razeek bin Md Hussain Maricar, an engineer by
qualification, has vast experience in management and in the property industry. As
for Datuk Puteh Rukiah binti Abd. Majid, she has vast experience having served in
several senior positions at the Ministry of Finance with her last senior position prior
to her retirement in 2011 being the Deputy Secretary General (Systems and
Controls).
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Pos Malaysia Berhad
Annual Report 2013
The principal functions and duties of the Audit Committee are as follows:
• Review the quarterly results and annual financial statements of the Company
and Group prior to the Board’s approval.
• Assess the quality and effectiveness of the systems of internal control and the
efficiency of the Group’s operations, particularly those relating to areas of
significant risk.
• Assess the internal process for determining and managing key risks other than
those that are dealt with by other specific Board Committees.
• Review the internal and external auditors’ evaluation of the Group’s system of
internal control and thereafter report the evaluation to the Board.
• Assess the effectiveness of the Internal Audit functions and the performance
of the Chief Internal Auditor as well as set KPIs for the Chief Internal Auditor.
Further details of the Audit Committee including its activities during the year
under review are disclosed in the Audit Committee Report contained in this
Annual Report.
(II) Board Nomination and Remuneration Committee
The BNRC comprises five (5) Non-Executive Directors, three (3) of whom are
Independent Directors. The members are as follows:
1. Tan Sri Dato’ Sri Haji Mohd Khamil bin Jamil
(Chairman/Non-Independent Non-Executive Chairman)
74
3. Datuk Puteh Rukiah binti Abd. Majid
4. Puan Eshah binti Meor Suleiman
5. Encik Abdul Hamid bin Sh Mohamed
(Appointed w.e.f 1 March 2013)
* Datuk Low Seng Kuan (ceased as member following his resignation on 16 May
2013)
* Dato’ Krishnan a/l Chinapan (ceased as member following his resignation on
24 October 2012)
The MCCG 2012 recommends that the Senior Independent Director of a company
should be the Chairman of the Nominating Committee. The Board had considered
and deliberated on the recommendation and decided to retain the BNRC
chairmanship as status quo until such time the two functions of the BNRC,
namely nomination and remuneration, are separated. Moreover, the Terms of
Reference of the BNRC are already in line with the other best practices of the
MCCG and duly adhered to by the BNRC.
The principal functions and duties of the BNRC are as follows:
• Propose to the Board suitable candidates for appointment as Directors in the
Group including membership and chairmanship of Board Committees.
• Review on an annual basis the Board structure, size and composition.
www.pos.com.my
• Propose succession planning for the GCEO, Executive Directors (if any) and
Chief Level Officers of the Company.
• Assess on an annual basis the effectiveness of the Board as a whole, the
Board Committees and the contribution of each Director.
* Dato’ Lukman bin Ibrahim (ceased as member following his resignation on
28 February 2013)
* Dato’ Krishnan a/l Chinapan (ceased as member following his resignation on
24 October 2012)
The principal functions and duties of the Tender Board Committee are as follows:
• Recommend to the Board the remuneration framework and the remuneration
package and terms of employment for the GCEO and Chief Level Officers of
the Company.
• Recommend to the Board for approval a set of KPIs for the GCEO and Chief
Level Officers of the Company and assess their respective performance against
the KPIs.
(III)Tender Board Committee
The Tender Board Committee comprises four (4) Non-Executive Directors, two (2)
of whom are Independent Directors. The members are as follows:
1. Puan Eshah binti Meor Suleiman
(Chairperson/Non-Independent Non-Executive Director)
3. Datuk Mohamed Razeek bin Md Hussain Maricar
(Appointed w.e.f 20 May 2013)
4. Encik Abdul Hamid bin Sh Mohamed
(Appointed w.e.f 23 April 2013)
• Examine and where appropriate, approve awards of contracts for the supply of
goods, work or services within the limits authorised in the LOA.
• Review the selection for the appointment of successful tenderers for both
close and open tender applications.
• Review and approve the Company’s procurement policies and procedures
including general evaluation criteria, anti-corruption policy and codes of conduct.
• Oversee and monitor the overall implementation of the Company’s Procurement
Policy Guidelines and review the efficiency and effectiveness of the Company’s
procurement processes.
(IV) Information and Communication Technology Committee
The Information and Communication Technology (“ICT”) Committee comprises
three (3) Non-Executive Directors, all of whom are Independent Directors. The
members are as follows:
1. Dato’ Sri Che Khalib bin Mohamad Noh
(appointed w.e.f 12 November 2012 and re-designated as Chairman w.e.f
23 April 2013)
(Chairman/Independent Non-Executive Director)
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Pos Malaysia Berhad
Annual Report 2013
3. Datuk Puteh Rukiah binti Abd. Majid
* Dato’ Lukman bin Ibrahim (ceased as Chairman following his resignation on
28 February 2013)
* Datuk Low Seng Kuan (ceased as member following his resignation on
16 May 2013)
The principal functions and duties of the ICT Committee are as follows:
•
To award ICT-related contracts/purchases within the limits of authority
granted to it as set out in the Company’s LOA.
•
Review, deliberate and thereafter recommend to the Board of Directors for
approval proposals made by Management on the Group’s flagship ICT-related
projects.
•
•
Review and assess the business case of the Group’s flagship ICT projects
and their costing to ensure that decisions are properly made on investments
and projects.
Deliberate on Management’s strategic and operational ICT plans to ensure
alignment with the Group’s Corporate Strategy and direction.
•
Review on an annual basis key emerging ICT trends and alert the Board on
the same including significant potential changes to the trends.
•
Deliberate on significant ICT issues affecting the delivery of the Group’s
flagship projects and thereafter make the necessary recommendations to the
Board on action plans to address and mitigate the same.
The Terms of Reference of the Board Committees are also accessible at the
Company’s corporate website.
76
B. Directors’ and GCEO’s Remuneration
The Board through the BNRC ensures that the remuneration of the GGEO is fair to
attract and retain the GCEO to manage the Group successfully. The level and make-up
of the remuneration are structured so as to link rewards with corporate and individual
performance. The BNRC determines the performance contracts and structures the
rewards for the GCEO based on his performance against the Corporate KPIs set and
approved by the Board early in the financial year.
Meanwhile, the Board as a whole determines the fees payable to the Non-Executive
Directors and any increase in Directors’ fees shall be subject to shareholders’ approval
at the Company’s AGM. The Non-Executive Directors are paid meeting allowances for
every Board and Board Committee meeting that they attend and the Company also
reimburses reasonable expenses incurred by the Directors in the course of their
performance of duties as Directors.
Details of the remuneration of the Directors of Pos Malaysia for the Period Under
Review are as follows:
Category (Director)
Executive
Fees (RM)
Salaries &
Bonus
Allowance
(RM)
Total (RM)
–
–
–
–
Non-Executive *
733,465.75
–
117,000.00
850,465.75
Total
733,465.75
–
117,000.00
850,465.75
www.pos.com.my
The remuneration bands of the Directors of Pos Malaysia for the Period Under Review
are as shown below:
Number of Directors
Range of Remuneration
Executive
Non-Executive
Below RM50,000
–
1
RM50,001 – RM100,000
–
5*
RM100,001 – RM150,000
–
3*
* Includes the remuneration payable to the Non-Executive Directors who have
resigned, namely Dato’ Krishnan a/l Chinapan, Dato’ Lukman bin Ibrahim, Datuk
Low Seng Kuan and Dato’ Wee Hoe Soon @ Gooi Hoe Soon. The disclosure on
remuneration band does not include the remuneration for Directors who were
appointed after the Period Under Review, namely Datuk Mohamed Razeek bin Md
Hussain Maricar and Datuk Puteh Rukiah binti Abd. Majid.
The Board remuneration review is carried out on a periodical basis, as and when
necessary, to reflect the complexity of the Company’s activities and added responsibility
of the Board members. Remuneration of other companies would be used as benchmarks
in the review. The last Board remuneration review was carried out in 2012 to align
with the remuneration policy of DRB-HICOM Berhad following the divestment of
Khazanah Nasional Berhad’s equity stake in the Company to DRB-HICOM Berhad on
1 July 2011.
C. R
elationship and Communication with Investors and
Shareholders
Investor Relations and Shareholder Communication
The Board acknowledges the importance of communication with investors and other
stakeholders. The Group has been communicating with stakeholders and investors via
quarterly financial reports, annual reports, announcements, circulars and press releases.
In addition, the Company conducts briefings and dialogues with financial analysts via
Investors’ Briefings on a quarterly basis to keep investors informed of the Group’s
activities and developments.
The Company’s corporate website, www.pos.com.my, also provides an avenue for
keeping the general public updated on the activities of the Group. The website is a
source of information on the Group’s financial results, services and products, annual
reports, press releases, events, newsletters, media highlights and other relevant
information. There is a dedicated channel on Investor Relations as stated in the
Annual Report and the corporate website where any inquiry from investors or
stakeholders may be channelled. Any query on Investor Relations matters may be
conveyed to:
Nik Ahmad Fauzan bin Nik Mohamed
Tel
:+603-2267 2267
Email :[email protected]
General Meetings
The Company’s general meetings serve as the principal forum for communicating with
the shareholders of the Company. At these meetings, shareholders have direct access
to the Directors and are given ample opportunity and time to raise questions or seek
further information from the Directors regarding the Group’s activities, financial
performance and prospects as well as raise any issue of concern regarding the Group.
Besides the Directors, the Senior Management and the Company’s external auditors are
present at the meetings to assist in responding to queries from the shareholders.
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Pos Malaysia Berhad
Annual Report 2013
Prior to the tabling of proposed resolutions at an AGM, the shareholders are presented
with a summary of the Group’s performance on the financial year under review. Voting
on resolutions at general meetings is by way of show of hands unless a poll is
demanded. Nevertheless, pursuant to the new amendments to the MMLR of Bursa
Securities, voting on resolutions relating to related party transactions shall be by way
of poll. It also has been a Company practice at general meetings for the presiding
Chairman to inform the shareholders of their right to demand for a poll at the
commencement of the meeting.
D. Accountability and Audit
Financial Reporting
Internal Control
The Board has the overall responsibility for establishing and maintaining a sound risk
management framework and system of internal control to provide reasonable assurance
of the effectiveness of the Group’s business operations and risk management to
safeguard shareholders’ investments and the Group’s assets.
A dedicated Risk Management Department and Risk Management Committee at the
Management level have been entrusted to look into risk management matters of the
Group. The Group’s Statement on Internal Control and Risk Management which is in
line with the new guideline on Statement on Risk Management and Internal Control:
Guidelines for Directors of Listed Issuers issued by Bursa Securities is reported
separately in this Annual Report.
The Company’s financial statements are drawn up in accordance with the provisions of
the Companies Act, and applicable approved accounting standards for entities other
than private entities issued by the Malaysian Accounting Standards Board. In
presenting the annual financial statements and quarterly announcements of results to
the shareholders, the Board aims to present a balanced and understandable assessment
of the Group’s position and prospects. In this regard, the Board also ensures that the
Group uses acceptable accounting policies for its financial statements, consistently
applied and supported by reasonable and prudent judgement and estimates.
Compliance
The Audit Committee assists the Board by first reviewing the financial statements to
ensure completeness, accuracy and validity prior to adoption of the statements by the
Board and subsequent release to Bursa Securities.
For being licensed under the MSBA, Pos Malaysia is subject to the provisions of the
MSBA and other rules, regulations, guidelines and circulars of BNM in relation thereof.
Besides the MSBA, Pos Malaysia is also subject to the Anti-Money Laundering and
Anti Terrorism Financing Act 2001 (“AMLTFA”).
The Directors’ Responsibility Statement in respect of the Audited Financial Statement
as required under Paragraph 15.26(a) of the MMLR of Bursa Securities is contained
in this Annual Report.
78
Pos Malaysia is licensed under the Postal Services Act 1991 (“Postal Act”) to carry
out postal services in Malaysia. By being the national postal operator, apart from being
subject to the provisions of the Postal Act (which was subsequently replaced by the
new Postal Services Act 2012), Pos Malaysia is also subject to compliance with other
rules and regulations of the Postal Act as well as rules and regulations made under
the Universal Postal Union Conventions at the international level.
www.pos.com.my
The Company Secretary assists the Board in ensuring compliance by the Company and
the Board of Directors with the Companies Act, the MMLR of Bursa Securities and
other securities laws, rules and regulations. The Board is apprised of the latest
amendments to these laws, rules and regulations from time to time and their
application to the Company and/or the Board. As and when necessary, the Company
also seeks clarification through professional opinions on the extent of application of
the said laws, rules and regulations especially when they concern the duties and
responsibilities of the Directors.
The Company’s IAD assists the Board and in particular the Audit Committee in
monitoring Management’s compliance with relevant laws, rules and regulations
applicable to the operations of the Company and the Company’s internal policies and
procedures. The IAD conducts regular audit checks on the Company’s operations and/
or as and when the need arises and tables its audit reports to the Audit Committee
for deliberation.
The Regulatory Management function of the Company serves as the contact point for
the Company to engage with the Malaysian Communications and Multimedia Commission
(“MCMC”), the postal services regulator in Malaysia. The Regulatory Management
function also monitors compliance by the Company with the Postal Act and its rules
and regulations.
Relationship with Auditors
The Company, through the Audit Committee, has an appropriate and transparent
relationship with the external auditors. In the course of auditing the Group’s operations,
the external auditors highlight to the Audit Committee and the Board matters that
require the Board’s attention. The external auditors also report to the Audit Committee
their findings pertaining to their annual audit.
The external auditors also meet the Audit Committee members without the presence
of Management pursuant to the MMLR of Bursa Securities. The Audit Committee then
shares and discusses with Management and the Board all comments raised by the
external auditors including action plans to be implemented by Management following
the comments. For the Period Under Review, this requirement has been complied with.
The Board is of the view that the declaration of independence, integrity and objectivity
made by the external auditors in their status audit report for each financial year end
would suffice to serve as a written assurance from the external auditors on their
independence and integrity throughout the conduct of the audit engagement in accordance
with the terms of all relevant professional and regulatory requirements. Nevertheless, the
Board has agreed to further assess the suitability of the external auditors through the
Audit Committee by the use of a set of questionnaires prescribed by the relevant
standards for audit firms and as prescribed under the MMLR of Bursa Securities.
Compliance by the Company with the MSBA and AMLTFA and its rules, regulations
and guidelines is monitored by the Group Corporate Compliance Department and
appointed compliance officers of the Company. The Group Corporate Compliance
Department also serves as the contact point for the Company to engage with BNM as
the regulator on MSBA and AMLTFA matters.
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Pos Malaysia Berhad
Annual Report 2013
Corporate Sustainability
In the Company’s efforts to promote corporate sustainability from the environmental,
social and governance aspects of the business to enhance investor perception and public
trust, the Company has a Corporate Responsibility Programme which defines the model
and approach of Pos Malaysia’s Corporate Responsibility programme and activities. The
programme also ensures the Company’s Business Clusters, subsidiaries and support units
embrace the principles of responsible and ethical business practices to build the
Company’s long-term sustainability by creating and enhancing shareholder value as well
as managing their expectations in a responsible manner and giving careful consideration
to the impact of our business on the community and the environment.
The Company also has in place a Customer Service Charter (Domestic Delivery
Standards) which sets out the performance standards for postal services as regulated
by MCMC. Other appropriate strategies will also be enhanced and established from
time to time as and when necessary to meet the Company’s business requirements.
The policies adopted by the Group can be assessed at the Company’s corporate website.
(This Statement is made in accordance with a resolution of the Board of Directors
dated 17 July 2013).
80
www.pos.com.my
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Pos Malaysia Berhad
Annual Report 2013
Statement on Risk Management and Internal Control (Srmic)
RESPONSIBILITY
RISK MANAGEMENT FRAMEWORK
The Board is responsible for ensuring that a sound system of internal control to
safeguard shareholder’s interest and Company’s assets is maintained. The Board
affirms its overall responsibility for the Group’s system of internal control which
includes the establishment of an appropriate control environment and framework as
well as reviewing its adequacy and integrity. As there are limitations that are inherent
in any system of internal control, this system is designed to manage rather than
eliminate risks that may hinder the achievement of the Group’s business objectives.
Accordingly, it can only provide reasonable but not absolute assurance against material
misstatement or loss. The system of internal control includes strategic, financial,
operational, compliance controls and risk management procedures.
Policy
The Board receives and reviews reports on the system of internal control in the Group
at least quarterly and is of the view that the system of internal control that has been
instituted throughout the Group is adequate to safeguard the shareholders’ investment
and the Group’s assets.
The oversight role on the internal controls will be carried out by the Audit Committee
(AC) on behalf of the Board. The AC will identify the risk areas and communicate the
critical risk areas and issues to the Board. The AC is supported by an independent
group internal audit (“Group IA”) which reports directly to the AC. The Group IA has
obtained the certification from The Institute of Internal Auditors Malaysia that indicates
the Group IA successfully completed the Quality Assessment in February 2013.
The Board is assisted by the Management in the implementation of the approved
policies and procedures on risks and controls, in which the Management identifies and
assesses the risk faced as well as implements and monitors appropriate control
measures to mitigate and control these risks.
82
The Board subscribes to the fact that an effective risk management practice is a
critical component of a sound system of internal control. In view of this, there is a
formal process to identify, evaluate and manage significant risks faced by the Group
that may impede the achievement of the Group’s objectives during the period under
review.
The Board has a stewardship responsibility to understand these risks, communicating
the requirements of this policy and to guide the organisation in dealing with these
risks.
The policy of the Board is:
• To manage risks proactively;
• To manage risks pragmatically, to acceptable levels given the particular circumstance
of each situation;
• To manage risk routinely and in an integrated and transparent way in accordance
with good governance practices; and
• To require that an effective and formalised Enterprise Risk Management Policy and
Procedure Manual (“ERM”) framework is established and maintained by the Group.
www.pos.com.my
Reporting Structure
The Risk Management Committee (“RMC”) of the Group is chaired by the Group Chief Executive Officer (“CEO”) and during the period under review, the members are as follows:
Chairman:
Dato’ Khalid bin Abdol Rahman
Group CEO (resigned wef 31.01.2013)
En. Mohd Shukrie bin Mohd Salleh
Covering Group Chief Executive Officer (Appointed wef 01.02.2013)
Members:
• En. Nik Ahmad Fauzan bin Nik Mohamed
• En. Radin Asrul bin Adza
Chief Information Officer
• Dato’ Mearia binti Hamzah
Chief Operating Officer, One Stop Solution (OSS)
• Dato’ Sabrina Albakri binti Abu Bakar
Group Head, Legal, Secretarial & Regulatory Counsel
• En. Bahaman bin Kamaruzzaman
Chief Operating Officer, Digital Solution (DS)
• En. Fikri bin Ahmad
Group Head, Human Resource
• Tn. Hj. Azizan bin Tarjo
Chief Operating Officer, Supply Chain Solution (SCS)
• En. Mohd Azri bin Hashim
Covering Group Head, Transport Management
• En. Ahmad Faisal bin Murad
Group Chief Financial Officer
• En. Mohd Amin Nallah bin Yahya
Group Head, Risk Management
The RMC’s principal roles and responsibilities, which are stipulated in the ERM, are as follows:
• Formulate policy, business rules, processes and structures to meet the risk
management implementation needs;
• Approve risk parameters and controls;
• Initiate and conduct business within agreed risk constraints and business rules;
• Implement the processes and source for suitable personnel for the department;
• Monitor policy implementation and the continuous development of the risk
management in the organisation;
• Ensure quarterly risk reports are submitted accurately and in a timely manner to
the Audit Committee and Board; and
• Articulate and challenge the key risks, controls and elements of best practice and
also offers support and advice.
83
Pos Malaysia Berhad
Annual Report 2013
Statement on Risk Management and Internal Control (Srmic) (cont’d.)
The Risk Management Department (“RMD”) acts as a support for the RMC in
monitoring, analysing and reporting of the risks identified enterprise-wide and as the
facilitator in the risk assessment process. RMD evaluates the risk policy and
procedures, and initiates improvements by maintaining awareness of trends and
developments in risk management that may have significant impact to the organisation.
Risk owners and co-owners have been identified to ensure that the risk registers and
risk profiles are updated accordingly. The risk registers and risk profiles of each
Strategic Business Unit (“SBU”), department and the main subsidiaries are updated
quarterly and the consolidated reports are tabled to the RMC and the Audit Committee.
The Group IA is involved in reviewing the results of the ERM processes. The IA
function examines the risk management systems for its effectiveness.
The Board and the Management review and enhance the ERM framework to ensure
that ERM practices are aligned with the latest ERM development and best practices.
SYSTEM OF INTERNAL CONTROL
The key elements of the Group’s internal control systems are described below:
• The roles and responsibilities of the Board of Directors, Risk Management
Committee, Business and Support Units and State offices in respect of Risk
Management are defined in the Risk Management Policy.
• The lines of responsibility and frequency of reporting of risks are also defined in
the Risk Management Policy.
• The Group also has in place a whistle blowing policy to provide an avenue for
employees to report any breach or suspected breach of any law or regulation,
including business principles and the Group’s policies and guidelines in a safe and
confidential manner. Whistle blowing Committee comprises Group Head Legal and
Group Head Internal Audit.
84
• Defined operating policies and procedures, which incorporate regulatory and
internal requirements, are prescribed in Operating Procedures and Circulars. The
documents are updated as and when necessary to meet the continually changing
operational needs.
• Defined level of authorities and lines of responsibilities from business units and
departments up to the Board level to ensure accountabilities for risk management
and control activities.
• Training and development programmes are established to ensure that staff are kept
up to date with the necessary competencies to carry out their responsibilities
towards achieving the Group’s objectives
• The Board meets at least quarterly to review the Group’s operational and financial
performance against approved budgets, approved quarterly report to Bursa Malaysia
Securities Berhad (“Bursa Securities”) and deliberate on issues that require the
Board’s approval. In addition, the Board is also updated on the changes in the
business environment following the 5 years Strategic Initiative plan that may
adversely affect business performance and relevant actions taken.
• The Audit Committee, together with the IA Department provides assessments based
on the approved audit plan on the adequacy, efficiency and effectiveness of the
Group’s internal control system. The IA Department recommends improvements
where necessary.
The monitoring, review and reporting arrangements in place give reasonable assurance
that the structure of controls and its operations are appropriate to the Group’s
operations and that risks are at an acceptable level throughout the Group. However,
the arrangements do not eliminate the possibility of human error or deliberate
circumvention of control procedures by employees.
The Board believes that the development of the system of internal control is an
ongoing process and has taken steps throughout the year to improve its internal control
system and will continue to do so.
www.pos.com.my
MONITORING AND REVIEW OF THE ADEQUACY AND INTEGRITY OF THE
SYSTEM OF INTERNAL CONTROL
WEAKNESSES IN INTERNAL CONTROL THAT RESULT IN MATERIAL
LOSSES
The process adopted to monitor and review the adequacy and integrity of the system
of internal control include:
To the best of the Board’s knowledge, there were no material losses incurred during
the period under review as a result of weaknesses in internal control. Management
continues to take measures to improve and strengthen the internal control environment.
The Board has also received an assurance from the Group Chief Executive Officer and
Chief Financial Officer of the Company that the risk management and internal control
system of the Group is operating adequately and effectively, in all material aspects,
based on the risk management and internal control system of the Group.
• The financial statements and the Group’s performance are reviewed quarterly by the
Audit Committee, who subsequently recommends the above to the Board for their
consideration and approval.
• Examination of business processes and the state of internal control by the Internal
Audit & Investigation Department (IAD). IAD adopts a risk and strategy based
approach in formulating the annual audit plan. IAD aligns its activities to the key
risks identified across the Group. This plan is reviewed and approved by the Audit
Committee. The reports on the audit review are submitted to the Management
Audit Committee and Audit Committee as and when prepared.
(This Statement on Risk Management and Internal Control was approved by the Board
of Directors on 19 June 2013).
The monitoring, review and reporting arrangements in place to provide reasonable
assurance that the structure of controls and its operations are appropriate to the
Group’s operations and that risk are at an acceptable level throughout the Group’s
business.
85
Pos Malaysia Berhad
Annual Report 2013
Directors’ Responsibility Statement
Pursuant to Paragraph 15.26(a) of the Main Market Listing
Requirements of Bursa Malaysia Securities Berhad, the Board of
Directors is required to include a statement in the Company’s
Annual Report explaining its responsibility for preparing the annual
audited financial statements.
In preparing the financial statements of the Company and the Group
for the financial year ended 31 March 2013, the Directors are
satisfied that the Company and the Group have used appropriate
accounting policies, consistently applied and supported by reasonable
and prudent judgments and estimates. The Directors are also
satisfied that all applicable approved accounting standards for
entities other than private entities issued by the Malaysian Accounting
Standards Board and the provisions of the Companies Act, 1965
have been complied.
The Directors are responsible for ensuring that the Company and
companies within the Group keep accounting records which disclose
with reasonable accuracy the financial position of the Company and
of the Group. In addition, the Directors are responsible to take such
steps as are reasonably open to them to safeguard the assets of the
Group and to prevent and detect fraud and other irregularities.
(This Statement is made in accordance with a resolution of the
Board of Directors dated 19 June 2013.)
86
www.pos.com.my
Additional Compliance Information
1. Utilisation of Proceeds
During the financial year ended 31 March 2013, there were no proceeds raised
by the Company from any corporate proposal.
2. Share buy-back
During the financial year ended 31 March 2013, the Company had not exercised
any share buy-back permitted by Section 67A of the Companies Act, 1965.
3. Options, Warrants or Convertible Securities
During the financial year ended 31 March 2013, the Company did not issue or
exercise any ESOS, warrants or convertible securities.
4. American Depository Receipt (ADR)/Global Depository Receipt (GDR)
During the financial year ended 31 March 2013, the Company did not sponsor
any ADR and/or GDR.
5. Sanctions and/or Penalties
During the financial year ended 31 March 2013, there were no sanctions and/or
penalties imposed on the Company and its subsidiaries, directors or management
by the relevant regulatory bodies.
6. Variation in Results
There is no variance in the Company’s audited financial results for the financial
year ended 31 March 2013 from the unaudited results as previously announced.
The Company has not released or announced any estimated profit, financial
forecast and projection in the financial year ended 31 March 2013.
7. Profit Guarantee
During the financial year ended 31 March 2013, the Company did not give any
profit guarantee.
8. Material Contracts
There was no material contract entered into by the Company or its subsidiaries
involving the directors and substantial shareholders, either still subsisting at the
end of the financial year ended 31 March 2013 or entered into since the end of
the previous financial year.
9. Non-Audit Fees
The amount of non-audit fees paid and payable to external auditors by the Group
for the financial year ended 31 March 2013 is RM281,000.
10.Recurrent Related Party Transaction of a Revenue or Trading Nature
Breakdown of the aggregate value of transactions conducted during the financial
year ended 31 March 2013 pursuant to the shareholders’ mandate on recurrent
related party transactions obtained on 9 August 2012:
87
Pos Malaysia Berhad
Annual Report 2013
Additional Compliance Information (cont’d.)
No.
Pos Malaysia and/or its
subsidiaries
Transacting related party
Nature of transactions
Related parties and their relationship with
Pos Malaysia Group
Aggregate value transacted
from 1 April 2012 to
31 March 2013 (RM’000)
1.
Pos Malaysia Group
Senai Airport Terminal
Services Sdn Bhd (“SATS”)
Payment to SATS for cargo
terminal charge in Senai Airport
and airside towing services by
Pos Malaysia Group
1)Tan Sri Dato’ Seri Syed Mokhtar Shah
bin Syed Nor (“TSSM”)#
– an indirect major shareholder of
MMC Corporation Berhad, the
holding company of SATS.
5.9
2.
Datapos (M) Sdn Bhd
PUSPAKOM Sdn Bhd
(“PUSPAKOM”)
Printing of notification by
Datapos (M) Sdn Bhd
1) DRB-HICOM Berhad (“DRB-HICOM”)*
– the holding company of PUSPAKOM
2) TSSM#
9.0
3.
Pos Malaysia Group
ISUZU Malaysia Sdn Bhd
(“ISUZU”)
Provision of logistics services
by Pos Malaysia Group
1) DRB-HICOM*
– ISUZU is an associated company of
DRB-HICOM
2) TSSM#
NIL
4.
Datapos (M) Sdn Bhd
Bank Muamalat Malaysia
Berhad (“BMMB”)
Printing of statement of
accounts by Datapos (M) Sdn
Bhd
1)DRB-HICOM*
– BMMB is a 70% owned subsidiary
of DRB-HICOM
2) TSSM#
NIL
5.
Pos Malaysia Group
HICOM-Teck See
Manufacturing Malaysia Sdn
Bhd (“HICOM-Teck See”)
1) DRB-HICOM*
– HICOM-Teck See is a 51% owned
subsidiary of HICOM Holdings
Berhad, a wholly-owned subsidiary
of DRB-HICOM
2) TSSM#
NIL
6.
Pos Malaysia Group
Motosikal Dan Enjin
Nasional Sdn Bhd
(“MODENAS”)
1) DRB-HICOM*
– M O D E N A S i s a 7 0 %
subsidiary of DRB-HICOM
2) TSSM#
NIL
Honda Malaysia Sdn Bhd
(“Honda”)
Purchase of vehicles and
payment for maintenance of
vehicles by Pos Malaysia Group
1)DRB-HICOM*
– Honda is an associated company
controlled by DRB-HICOM
2) TSSM#
7.
88
Pos Malaysia Group
owned
NIL
www.pos.com.my
No.
subsidiaries
Pos Malaysia Group
31 March 2013 (RM’000)
8.
Pos Malaysia Group
Proton Parts Centre
Sdn Bhd (“Proton Parts”)
1) DRB-HICOM*
– Proton Parts is a wholly-owned
subsidiary of Proton Holdings
Berhad, a subsidiary of DRB-HICOM
2) TSSM#
NIL
9.
Datapos (M) Sdn Bhd
Uni.Asia General Insurance
Berhad (“Uni.Asia General”)
Printing of insurance policy
and notification by Datapos
(M) Sdn Bhd
1)DRB-HICOM*
– Uni.Asia General is an indirect
associated company controlled by
DRB-HICOM
2)TSSM#
NIL
10.
Pos Malaysia Group
Euromobil Sdn Bhd
(“Euromobil”)
vehicles by Pos Malaysia
Group
1)DRB-HICOM*
– E u r o m o b i l i s a w h o l l y - o w n e d
subsidiary of DRB-HICOM
2) TSSM#
NIL
11.
Datapos (M) Sdn Bhd
Uni.Asia Life Assurance
Berhad (“Uni.Asia Life”)
Printing of insurance policy
and notification by Datapos
(M) Sdn Bhd
1)DRB-HICOM*
– U n i . A s i a L i f e i s a n i n d i r e c t
associated company controlled by
DRB-HICOM
2)TSSM#
NIL
12.
Pos Malaysia Group
JP Logistics Sdn Bhd
(“JP Logistics”)
Sub-contract of land haul
from Pusat Mel Nasional/
Pusat Mel & Kurier to northern
and southern region of
Peninsular Malaysia by Pos
Malaysia Group
1) TSSM#
– an indirect major shareholder of
MMC Corporation Berhad, the
holding company of JP Logistics
NIL
13.
Pos Malaysia Group
Proton Edar Sdn Bhd
(“Proton Edar”)
• Purchase of vehicles by
Pos Malaysia Group
• Payment for parts and
maintenance of vehicles
1)DRB-HICOM*
– Proton Edar is a wholly-owned
subsidiary of Proton Holdings
2)TSSM#
273.8
89
Pos Malaysia Berhad
Annual Report 2013
Additional Compliance Information (cont’d.)
No.
subsidiaries
Pos Malaysia Group
31 March 2013 (RM’000)
14.
Pos Malaysia Group
Edaran Otomobil Nasional
Berhad (“EON”)
Group
1)DRB-HICOM*
– EON is a 100% owned subsidiary of
HICOM Holdings Berhad, a whollyowned subsidiary of DRB-HICOM
2)TSSM#
NIL
15.
Pos Malaysia Group
Mitsubishi Motors Malaysia
Sdn Bhd (“Mitsubishi”)
Purchase of vehicles by Pos
Malaysia Group
1)DRB-HICOM*
– Mitsubishi is an associated company
controlled by DRB-HICOM
2)TSSM#
NIL
16.
Pos Malaysia Group
Edaran Modenas Sdn Bhd
(“Edaran Modenas”)
Purchase of motorcycles and
payment for parts and
maintenance of motorcycles
1)DRB-HICOM*
– Edaran Modenas is a 100% owned
subsidiary of MODENAS, a subsidiary
of DRB-HICOM
2)TSSM#
2,246
17.
Pos Malaysia Group
Perusahaan Otomobil
Nasional Sdn Bhd
(“PROTON”)/ Proton Tanjung
Malim Sdn Bhd
(“Proton TM”)
1)DRB-HICOM*
– PROTON and Proton TM are whollyowned subsidiary of Proton Holdings
2) TSSM#
701.5
18.
Pos Malaysia Group
ISUZU HICOM Malaysia
Sdn Bhd (“ISUZU HICOM”)
Group
1)DRB-HICOM*
– ISUZU HICOM is an associated
company controlled by DRB-HICOM
2)TSSM#
NIL
19.
Pos Malaysia Group
Automotive Corporation
(Malaysia) Sdn Bhd (“ACM”)
Group
1)DRB-HICOM*
– ACM is a wholly-owned subsidiary of
DRB-HICOM
2)TSSM#
7.7
20.
Pos Malaysia Group
DRB-HICOM Leasing Sdn
Bhd (formerly known as
EON Inovasi Sdn Bhd)
(“DRB-HICOM Leasing”)
Leasing of vehicles by Pos
Malaysia Group
1)DRB-HICOM*
– DRB-HICOM Leasing is a 100%
owned subsidiary of EON Berhad,
a wholly-owned subsidiary of
DRB-HICOM
2)TSSM#
48.3
90
www.pos.com.my
No.
21.
subsidiaries
Pos Malaysia Group
KL Airport Services Sdn Bhd
(“KLAS”)
• Payment to KLAS for air
cargo handling services
• Rental of air cargo terminal
in East Malaysia airports
for sorting purpose for air
cargo by Pos Malaysia
Group
• Sale of air cargo space by
Pos Malaysia Group
• Payment of Cargo terminal
charges in KLIA via KLAS
cargo terminal and airside
cargo towing services by
Pos Malaysia Group
• Purchase of air cargo
space by Pos Malaysia
Group
• Payment for maintenance
and refurbishment of
vehicle by Pos Malaysia
Group
• Rental of warehouse space
at former Bukit Raja Mail
Processing Centre to KLAS
Pos Malaysia Group
1)DRB-HICOM*
– KLAS is a 100% owned subsidiary
of HICOM Holdings Berhad,
a wholly-owned subsidiary of
DRB-HICOM
2)TSSM#
31 March 2013 (RM’000)
1,050
–
22.4
8.4
–
21.0
588.9
Notes:
*
DRB-HICOM Berhad (“DRB-HICOM”) is a major shareholder of Pos Malaysia
# Tan Sri Dato’ Seri Syed Mokhtar Shah bin Syed Nor (“TSSM”) is an indirect major shareholder of Pos Malaysia Berhad and DRB-HICOM.
91
Pos Malaysia Berhad
Annual Report 2013
Audit Committee Report
The Board of Directors of Pos Malaysia is pleased to present the report on the Audit Committee of the Board for the
financial year ended 31 March 2013.
Members and Meetings
The composition of the Pos Malaysia’s Audit Committee during the financial year under review up to the date of issuance of this report are as follows:
Members
a) Abdul Hamid bin Sh. Mohamed
Independent Non-Executive Director (Chairman)
(Appointed Chairman on 21 May 2013)
*
Datuk Low Seng Kuan
Senior Independent Non-Executive Director (Chairman)
(Resigned on 16 May 2013)
b) Dato’ Ibrahim Mahaludin bin Puteh
Senior Independent Non-Executive Director (Member)
*
Non-Independent Non-Executive Director (Member)
(Resigned on 28 February 2013)
*
Independent Non-Executive Director (Member)
(Resigned on 7 June 2013)
c) Datuk Mohamed Razeek bin Md Hussain Maricar
Non-Independent Non-Executive Director (Member)
(Appointed on 10 May 2013)
d) Datuk Puteh Rukiah binti Abd. Majid
Independent Non-Executive Director (Member)
(Appointed on 19 June 2013)
The Audit Committee of Pos Malaysia had convened six (6) meetings during the
financial year under review. The attendance of meetings of the members are as follows:
Attendance of Meetings
Members
92
Total
Datuk Low Seng Kuan
4/6
6/6
5/5
5/6
www.pos.com.my
Terms of Reference
• No alternate director should be appointed as a member of the Audit Committee;
The Terms of Reference of the Audit Committee are in line with the Main Market
Listing Requirements of Bursa Malaysia Securities Berhad (“MMLR of Bursa Securities”)
and the Malaysian Code on Corporate Governance (Revised 2007)(“the Code”). The
Terms of Reference of the Audit Committee are as follows:
• In the event of any vacancy in the Audit Committee resulting in the non-compliance
of the MMLR of Bursa Securities pertaining to composition of the Audit Committee,
the Board of Directors shall within three (3) months of that event fill the vacancy;
Composition of Committee
The Audit Committee shall be appointed by the Board of Directors upon recommendation
of the Board Nomination and Remuneration Committee which meets the following
requirements:
• The Audit Committee shall consist of not less than three (3) members;
• All the members of the Audit Committee must be non-executive directors, with a
majority of them being independent directors as defined under the MMLR of Bursa
Securities;
• At least one (1) member of the Audit Committee must meet the criteria set by the
MMLR of Bursa Securities as follows:
– Must be a member of the Malaysian Institute of Accountants; or
– If he/she is not a member of the Malaysian Institute of Accountants, he must
have at least three (3) years working experience; and
– He/she must have passed the examinations specified in Part I of the 1st
Schedule of the Accountants Act 1967; or he/she must be a member of one
(1) of the associations of accountants specified in Part II of the 1st Schedule
of the Accountants Act 1967; or
• Fulfils such other requirements as prescribed or approved by Bursa Malaysia
Securities Berhad (“Bursa Securities”);.
• The Audit Committee members shall collectively:
a) Have knowledge of the industries in which the Group operates; and
b) Have the ability to understand key business and financial risks as well as
related controls and control processes;
• All members of the Audit Committee shall also be financially literate i.e. have the
ability to read and understand fundamental financial statements, including a
Company’s balance sheet, income statement, statement of cash flow and key
performance indicators.
Audit Committee Meetings
The Audit Committee Meetings shall be held not less than four (4) times a year. In
addition to the members of the Audit Committee, the meeting may be attended by the
Group Chief Executive Officer, Group Chief Financial Officer and Chief Internal Auditor.
Other members of the Board, senior management and external auditors’ representatives
may attend the meetings upon invitation of the Audit Committee. The auditors, both
internal and external, may request a meeting if they deem necessary.
The quorum for a meeting of the Audit Committee shall comprise a majority of
Independent Directors from among its members. In the absence of the Chairman, the
members present shall elect a chairman for the meeting from among the members
present. Minutes of each meeting shall be kept and distributed to each member of
the Audit Committee and of the Board. The Audit Committee shall report on each
meeting to the Board. The Secretary to the Audit Committee shall be the Company
Secretary or any other person as the Committee may decide.
• The members of the Audit Committee shall elect a Chairman from among
themselves who shall be an Independent Director;
93
Pos Malaysia Berhad
Annual Report 2013
Audit Committee Report (cont’d.)
Rights and Authority
Responsibilities and Duties
The duties of the Audit Committee shall be in accordance with the same procedures
adopted by the Board:
The responsibilities and duties of the Audit Committee are as follows:
a) Risk Management
• Have authority to investigate any activity within its Terms of Reference;
• Have the resources which are required to perform its duties;
• Have full and unrestricted access to any employee and information pertaining to
the Group. All documents of the Group shall be made accessible to the Audit
Committee and all employees are directed to co-operate with the request made by
the Audit Committee;
• Have direct communication channels with the external auditors and person(s)
carrying out the internal audit function or activity for the Group; and
• Be able to engage independent professional advisers or other advisers and to
secure attendance of other third parties with relevant experience and expertise if
it considers necessary.
Notwithstanding anything to the contrary, the Audit Committee does not have executive
powers and shall report to the Board of Directors on matters considered and its
recommendation thereon, relating to the Group and the Company.
Review of the Audit Committee
The performance of the Audit Committee and each of the members shall be reviewed
by the Board of Directors at least once every three (3) years to determine whether the
Committee and its members have carried out their duties in accordance with the Terms
of Reference as set out in the Corporate Governance Statement on pages 66 to 85 of
this Annual Report.
94
To review the adequacy and effectiveness of Enterprise Risk Management
(“ERM”), reporting structures, risk profiles and governance processes.
b) Internal Audit
• To approve the appointment, replacement and dismissal of the Chief Internal
Auditor and his deputy;
• To review the adequacy of the scope, functions, competency and resources of
Internal Audit Department (“IAD”) and that it has the necessary authority to
carry out its work;
• To review and approve the Annual Risk Based Audit Plan, Key Performance
Indicators and subsequently appraise the performance of the IAD;
• To monitor the effectiveness in the implementation of the Whistle Blowing
Policy and procedure and other related governance processes;
• To review the internal audit reports on significant/major audit findings and
Management’s responses to ensure that appropriate and adequate remedial
actions are taken by the Management; and
• To review the systems of internal controls with the auditors.
c) External Audit
• To review the external auditors’ audit plan, scope of their audits and their
Management letters and ensure appropriate and adequate remedial actions are
taken by Management on significant lapses in controls and procedures that
are identified;
www.pos.com.my
• To assess the performance of the external auditors and make recommendations
to the Board of Directors on their appointment and removal;
Summary of Activities
During the year under review, the Audit Committee carried out the following activities:
• To recommend the nomination of external auditors, their audit fees and
resignation or dismissal of external auditors and thereafter report the same to
the Board;
• To review the quarterly and annual financial statements of the Group and the
Company focusing on the matters set out below, and thereafter submit the
same to the Board:
– Any changes in or implementation of major accounting policies and
practices;
– Major judgmental areas, significant and unusual events;
– Significant adjustments arising from the audit;
– Going concern assumption; and
– Compliance with Accounting Standards and regulatory requirements.
– To discuss problems and reservations arising from the interim and final
audits and any matter the external auditors may wish to discuss.
d) Other Matters
• To review related party transactions entered into by the Group and the
Company and to ensure that such transactions are undertaken on the Group’s
normal commercial terms and that the internal control procedures with regards
to such transactions are sufficient.
• Any other functions as may be agreed to by the Committee and the Board.
• Where the Audit Committee is of the view that a matter reported to the Board
of Directors has not been satisfactorily resolved resulting in a breach of the
MMLR of Bursa Securities, the Committee has the responsibility to properly
report such matter to Bursa Securities.
Financial Reporting
a. Reviewed quarterly and annual financial reports of the Group and the Company
prior to submission to the Board of Directors for approval. The review was to
ensure that the financial reporting and disclosure are in compliance with:
•
•
•
•
•
Provisions of the Companies Act 1965;
MMLR of Bursa Securities;
Applicable approved accounting standards in Malaysia;
Other legal and regulatory requirements; and
In the review of the annual audited financial statements, the Audit Committee
discussed with Management and the external auditors, the accounting
principles and standards that were applied and their judgement of the items
that may affect the financial statements.
Internal Audit
a. Reviewed the risk-based annual audit plan to ensure adequacy of the scope and
coverage of major risk areas of the Group;
b. Reviewed the Key Performance Indicators of the IAD and appraised the
department’s performance and competency level;
c. Reviewed the effectiveness of the audit process, resource requirements for the
year;
95
Pos Malaysia Berhad
Annual Report 2013
Audit Committee Report (cont’d.)
d. Reviewed the internal audit reports which were tabled during the year, the audit
recommendations made and management’s responses to these recommendations
and where appropriate, the committee has directed Management and to rectify
and improve internal controls and Standard Operating Procedures based on the
internal auditor’s recommendations and suggestions for improvement;
e. Monitored the corrective actions on the outstanding audit issues to ensure that
all the key risks and control lapses had been addressed; and
f. Monitored internal audit activities and the staffing requirements, skills and the
core competency of the Internal Auditors.
Internal Audit Function
The Audit Committee is assisted by the IAD to effectively discharge its duties and
responsibilities. The IAD reports directly to the Audit Committee. In the financial year
ended 2013, there were six (6) Audit Committee meetings held to deliberate on major
audit findings. In general, the IAD provides an independent assurance on the adequacy
and effectiveness of internal controls, corporate risk management and overall governance
processes.
Annually, the IAD prepares a risk based audit plan and presents to the Audit
Committee for approval. In view of scarce resources, the risk based audit plan gives
priority and focuses on the Company’s top risks identified by the Management.
External Auditors
a. Reviewed the external auditors on:
The audit scope includes performing audit reviews at Strategic Business Units
(“SBUs”), States Management Offices, Support Services Departments and subsidiaries.
The audits cover the reviews on:
• their audit plan, audit strategy and scope of work for the year; and
• the results of the annual audit, their audit reports and management letter
together with management’s response to the findings of the external auditors.
b. Evaluated the performance and the effectiveness of the external auditors and
made recommendations to the Board of Directors on their appointment and
remuneration.
Related Party Transactions
Review related party transactions entered into by the Group and the Company and the
disclosure of such transactions as per the regulatory requirements.
96
1.
2.
3.
4.
5.
6.
7.
8.
the adequacy of internal controls;
the effectiveness and efficiency of operations;
the accuracy of financial and operational information;
the compliance with internal policy & procedure, regulatory and statutory
requirements;
the adequacy and effectiveness of IT systems in supporting operations;
the effectiveness of risk management processes and the implementation of
controls by management to mitigate company’s major risks;
the effectiveness of on-going key project implementation and deliverables; and
the compliance with the Code and the MMLR of Bursa Securities.
www.pos.com.my
The IAD shows a high level of professional expertise, with qualified and experienced
auditors who consistently show their competency through the high quality and
usefulness of the audit product over time.
The IAD also conducted ad-hoc assignments and investigation audits requested by the
Audit Committee and Management. Further, the IAD conducts regular follow-up(s) on
the closing of audit issues with input from the Management.
In ensuring effective communication of audit issues to all operational areas and
prompt closing of audit issues, meetings were held with the Management on a regular
basis. Management is responsible for ensuring that corrective actions on reported
weaknesses and suggested improvements as recommended are taken within the
required time frame.
The IAD also provides consultancy services to the Management in evaluating the risk
exposures of new business products and projects prior to implementation and ensures
that controls are in place to mitigate risks identified. The IAD continues to assist
Management in supporting the Whistle Blowing Policy and the Integrity Pact established
in 2008 to ensure transparency and integrity throughout the tendering process.
The IAD independently reviews the risk management governance processes to ensure
their adequacy and effectiveness and reports to the Audit Committee on a periodical
basis.
The total amount spent for the Internal Audit function at Pos Malaysia in respect of
the financial year ended 31 March 2013 was RM4.9 million.
97
Pos Malaysia Berhad
Annual Report 2013
Directors’ Report
The Directors of Pos Malaysia Berhad have pleasure in submitting their report and the
audited financial statements of the Group and of the Company for the financial year
ended 31 March 2013.
Reserves and provisions
There were no material transfers to or from reserves and provisions during the financial
year under review except as disclosed in the financial statements.
Principal activities
The principal activities of the Company during the financial year are to provide postal
and its related services which include receiving and dispatching of postal articles,
postal financial services, dealing in philatelic products and sale of postage stamps.
The principal activities of the subsidiaries are stated in Note 14 to the financial
statements.
There has been no significant change in the nature of these activities during the
financial year except for a newly incorporated subsidiary, Pos Ar-Rahnu Sdn. Bhd.
which is principally engaged in Ar-Rahnu (Islamic pawn broking).
Financial results
Dividends
Since the end of the previous financial period, the Company paid:
RM’000
i)
ii)
a first and final dividend of 17.5 sen per ordinary share less
tax at 25% (13.1 sen net per ordinary share) in respect of the
financial period ended 31 March 2012 paid on 10 September
2012; and
70,485
an interim ordinary dividend of 8.0 sen per ordinary share less
tax at 25% (6.0 sen net per ordinary share) in respect of the
financial year ended 31 March 2013 paid on 31 December 2012
32,221
Total dividends paid
Group
RM’000
Company
RM’000
151,726
(421)
127,938
–
151,305
127,938
Net profit for the financial year
Attributable to:
Owners of the Company
Non-controlling interest
98
102,706
The final dividend recommended by the Directors in respect of the financial year
ended 31 March 2013 is 9.50 sen per ordinary share less tax at 25% (7.13 sen net
per ordinary share) totalling RM38,263,000, subject to the approval of the shareholders
at the forthcoming Annual General Meeting.
www.pos.com.my
Directors of the Company
Directors’ benefits
The Directors who held office during the year since the date of the last report are as
follows:
During and at the end of the financial year, no arrangements subsisted to which the
Company is a party, being arrangements with the object or objects of enabling
Directors of the Company to acquire benefits by means of the acquisition of shares in,
or debentures of, the Company or any other body corporate.
Tan Sri Dato’ Sri Haji Mohd Khamil bin Jamil (Chairman)
Dato’ Sri Che Khalib bin Mohamad Noh (appointed on 17.08.2012)
Abdul Hamid bin Sh Mohamed (appointed on 01.03.2013)
Datuk Mohamed Razeek bin Md Hussain Maricar (appointed on 24.04.2013)
Datuk Puteh Rukiah binti Abd. Majid (appointed on 07.06.2013)
Dato’ Lukman bin Ibrahim (resigned on 28.02.2013)
Dato’ Krishnan a/l Chinapan (resigned on 24.10.2012)
Datuk Low Seng Kuan (resigned on 16.05.2013)
Dato’ Wee Hoe Soon @ Gooi Hoe Soon (resigned on 07.06.2013)
Since the end of the previous financial period, no Director has received nor become
entitled to receive a benefit (other than emoluments disclosed in Note 7 to the
financial statements) by reason of a contract made by the Company or a related
corporation with the Director or with a firm of which the Director is a member, or with
a company in which the Director has a substantial financial interest.
Nomination and remuneration committee
The Nomination and Remuneration Committee establishes and recommends the
remuneration structure and policy for the Directors and Key Management Officers
whereupon such recommendations are made to the Board of Directors for approval.
Directors’ interests
According to the Register of Directors’ Shareholdings, particulars of the interests and
the deemed interest of a Director who held office at the end of the financial year, in
the shares of the Company was as follows:
Number of ordinary shares of RM0.50 each
Tan Sri Dato’ Sri Haji Mohd
Khamil bin Jamil
At
1.4.2012
Bought
Sold
At
31.3.2013
57
–
–
57
The Nomination and Remuneration Committee consists of the following Directors:
Tan Sri Dato’ Sri Haji (Chairman/Non-Independent
Mohd Khamil bin Jamil
Non-Executive Director)
Dato’ Ibrahim Mahaludin bin Puteh (Senior Independent Non-Executive Director)
Datuk Puteh Rukiah binti Abd. Majid (Independent Non-Executive Director)
Issue of shares
Other than as disclosed above, according to the Register of Directors, none of the
Directors in office at the end of the financial year held any interest in the shares of
the Company and of its related corporations during the financial year.
There were no changes in the authorised, issued and paid-up capital of the Company
during the financial year.
99
Pos Malaysia Berhad
Annual Report 2013
Directors’ Report (cont’d.)
Options granted over unissued shares
At the date of this report, there does not exist:
No options were granted to any person to take up unissued shares of the Company
during the financial year.
(i) any charge on the assets of the Group or of the Company that has arisen since the
end of the financial year and which secures the liabilities of any other person, or
Other statutory information
Before the financial statements of the Group and of the Company were made out, the
Directors took reasonable steps to ascertain that:
(i) all known bad debts have been written off and adequate provision made for
doubtful debts, and
(ii) any current assets which were unlikely to be realised in the ordinary course of
business have been written down to an amount which they might be expected so
to realise.
At the date of this report, the Directors are not aware of any circumstances:
(i) that would render the amount written off for bad debts, or the amount of the
provision for doubtful debts, in the Group and in the Company inadequate to any
substantial extent, or
(ii) that would render the value attributed to the current assets in the financial
statements of the Group and of the Company misleading, or
(iii) which have arisen which render adherence to the existing method of valuation of
assets or liabilities of the Group and of the Company misleading or inappropriate,
or
(iv) not otherwise dealt with in this report or the financial statements, that would
render any amount stated in the financial statements of the Group and of the
Company misleading.
(ii) any contingent liability in respect of the Group or of the Company that has arisen
since the end of the financial year.
No contingent liability or other liability of any company in the Group has become
enforceable, or is likely to become enforceable within the period of twelve months after
the end of the financial year which, in the opinion of the Directors, will or may
substantially affect the ability of the Group and of the Company to meet their
obligations as and when they fall due.
In the opinion of the Directors, except as disclosed in Note 5 to the financial
statements, the financial performance of the Group and of the Company for the
financial year ended 31 March 2013 have not been substantially affected by any item,
transaction or event of a material and unusual nature nor has any such item,
transaction or event occurred in the interval between the end of that financial year
and the date of this report.
Auditors
The auditors, Messrs KPMG, have indicated their willingness to accept re-appointment.
Signed on behalf of the Board of Directors in accordance with a resolution of the
Directors:
Kuala Lumpur,
Date: 19 June 2013
100
Abdul Hamid bin Sh. Mohamed
www.pos.com.my
Statements of Profit or Loss and Other Comprehensive Income
for the year ended 31 March 2013
Group
Note
Revenue
Cost of materials and consumables
Staff costs
Rental, communication and utilities
Transportations
Maintenance and supplies
Depreciation of property, plant and equipment
Other operating expenses
Results from operating activities
Finance income
Other income
Fair value through profit or loss:
Held for trading financial instrument
Impairment loss on investment in a subsidiary
Impairment loss on financial assets designated as available-for-sale
Change in fair value of investment properties
Finance costs
Zakat
Profit before tax
Tax expense
Net profit for the financial year/period
4
11
Year ended
31.3.2013
RM’000
Company
1.1.2011 to
31.3.2012
RM’000
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
1,269,511
(25,176)
(681,109)
(56,569)
(132,667)
(56,459)
(85,275)
(71,448)
1,481,660
(24,952)
(780,713)
(81,916)
(167,308)
(70,751)
(86,845)
(86,531)
1,219,891
(8,528)
(667,583)
(62,613)
(131,685)
(53,761)
(81,780)
(64,401)
1,435,227
(7,356)
(764,158)
(84,673)
(166,388)
(70,457)
(83,956)
(82,455)
160,808
17,204
11,337
182,644
19,153
17,897
149,540
13,976
11,031
175,784
16,153
17,709
5
(104)
–
–
1,592
(20)
1,052
283
–
(10,322)
(2,531)
(2,038)
(4,884)
(122)
–
–
–
–
1,052
337
(17,164)
(10,322)
–
(2,037)
(4,884)
5
8
191,869
(40,564)
200,202
(61,361)
175,477
(47,539)
175,576
(59,690)
151,305
138,841
127,938
115,886
14
16
12
101
Pos Malaysia Berhad
Annual Report 2013
Statements of Profit or Loss and Other Comprehensive Income (cont’d.)
Group
Company
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
–
1,144
–
–
–
1,144
–
–
Total comprehensive income for the financial year/period
151,305
139,985
127,938
115,886
Net profit for the financial year/period attributable to:
151,726
(421)
138,841
–
127,938
–
115,886
–
151,305
138,841
127,938
115,886
151,726
(421)
139,985
–
127,938
–
115,886
–
151,305
139,985
127,938
115,886
28.3
25.9
Note
Other comprehensive income, net of tax
Items that will not be reclassified subsequently to profit or loss
Revaluation of property, plant and equipment upon transfer
of properties to investment properties
Other comprehensive income for the financial year/period, net of tax
Total comprehensive income for the financial year/period attributable to:
Basic earnings per ordinary share (sen)
9
The notes on pages 110 to 189 are an integral part of these financial statements.
102
www.pos.com.my
Statements of Financial Position
as at 31 March 2013
Group
Note
Assets
Property, plant and equipment
Investment properties
Goodwill
Investments in subsidiaries
Investments in associates
Other investments
Deferred tax assets
11
12
13
14
15
16
23
Total non-current assets
Other investments
Inventories
Trade and other receivables
Prepayment and other assets
Current tax assets
Cash and cash equivalents
Asset classified as held for sale
Total current assets
Total assets
16
17
18
19
20
Company
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
603,748
29,550
4,630
–
–
115,233
–
622,309
27,958
4,630
–
–
120,744
–
551,960
15,071
4,630
–
–
96,468
417
518,438
–
–
49,180
–
115,586
–
543,932
–
–
45,180
–
121,193
–
459,819
–
–
62,344
–
96,079
–
753,161
775,641
668,546
683,204
710,305
618,242
1,159
11,559
174,120
7,315
3,268
10,132
153,157
9,857
104,306
8,761
187,595
8,975
194
7,951
272,770
4,659
2,323
6,855
257,994
4,243
103,164
5,457
242,882
8,214
1,482
666,467
–
190
544,076
1,755
1,503
395,533
–
–
528,095
–
–
436,648
1,755
–
354,443
–
862,102
722,435
706,673
813,669
709,818
714,160
1,615,263
1,498,076
1,375,219
1,496,873
1,420,123
1,332,402
103
Pos Malaysia Berhad
Annual Report 2013
Statements of Financial Position (cont’d.)
as at 31 March 2013
Group
Note
Company
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
268,513
385
678,215
268,513
385
629,195
268,513
385
559,695
268,513
385
553,417
268,513
385
528,185
268,513
385
482,784
Equity attributable to owners of the Company
947,113
579
898,093
–
828,593
–
822,315
–
797,083
–
751,682
–
Total equity
947,692
898,093
828,593
822,315
797,083
751,682
36,665
–
17,804
15
12,282
30,762
35,112
–
17,399
–
11,372
30,738
36,665
17,819
43,044
35,112
17,399
42,110
17,704
7,611
605,591
5
17,538
564,621
13,236
18,497
471,849
–
6,667
632,779
–
17,946
587,695
13,222
19,011
506,377
Total current liabilities
630,906
582,164
503,582
639,446
605,641
538,610
Total liabilities
667,571
599,983
546,626
674,558
623,040
580,720
1,615,263
1,498,076
1,375,219
1,496,873
1,420,123
1,332,402
Equity
Share capital
Share premium
Reserves
Liabilities
Deferred tax liabilities
Borrowings
21
21
22
23
24
Total non-current liabilities
Borrowings
Current tax liabilities
Trade and other payables
Total equity and liabilities
24
25
104
www.pos.com.my
Statements of Changes in Equity
Attributable to owners of the Company
Non-distributable
Distributable
Total
RM’000
Noncontrolling
interest
RM’000
Total
equity
RM’000
559,695
828,593
–
828,593
–
138,841
138,841
–
138,841
–
1,144
–
1,144
–
1,144
–
–
–
–
1,144
–
138,841
(70,485)
139,985
(70,485)
–
–
139,985
(70,485)
268,513
385
1,144
628,051
898,093
–
898,093
–
–
–
–
–
–
–
–
–
151,726
–
(102,706)
151,726
–
(102,706)
(421)
1,000
–
151,305
1,000
(102,706)
268,513
385
1,144
677,071
947,113
579
947,692
Note 21
Note 21
Note 21
Note 22
Share
premium
RM’000
Revaluation
reserve
RM’000
Retained
earnings
RM’000
268,513
385
–
Profit for the financial period
–
–
Revaluation of property, plant and equipment upon
transfer of properties to investment properties
–
Total comprehensive income for the financial period
Dividends to owners of the Company
Note
Group
At 1 January 2011
At 31 March 2012/1 April 2012
Profit and total comprehensive income for
the financial year
Issuance of shares of a subsidiary
At 31 March 2013
10
10
Share
capital*
RM’000
105
Pos Malaysia Berhad
Annual Report 2013
Statements of Changes in Equity (cont’d.)
Attributable to owners of the Company
Non-distributable
Distributable
Share
premium
RM’000
Retained
earnings
RM’000
Total
RM’000
268,513
385
482,784
751,682
–
–
115,886
115,886
10
–
–
(70,485)
(70,485)
10
268,513
–
–
385
–
–
528,185
127,938
(102,706)
797,083
127,938
(102,706)
268,513
385
553,417
822,315
Note 21
Note 21
Note 22
Note
Company
At 1 January 2011
Profit and total comprehensive income for the financial period
Profit and total comprehensive income for the financial year
At 31 March 2013
Share
capital*
RM’000
* Share capital includes the Special Rights Redeemable Preference Share of RM1.00. Refer to Note 21(a) the financial statements for details of the terms and rights attached
to the Special Rights Redeemable Preference Share.
106
www.pos.com.my
Statements of Cash Flows
Group
Note
Cash flows from operating activities
Profit before tax
Adjustments for:
Dividend income
Finance income
Finance costs
Gain on disposal of property, plant equipment
Gain on disposal of asset held for sale
Property, plant and equipment written off
Impairment loss on:
– Financial assets designated as available-for-sale
– Investment in a subsidiary
(Gain)/Loss on disposal of other investments
Unrealised foreign exchange loss/(gain)
Company
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
191,869
200,202
175,477
175,576
(1,592)
85,652
–
2,531
87,262
(74)
–
82,157
–
–
84,373
(41)
104
(17,204)
20
(145)
(6,201)
186
(283)
(19,153)
2,038
(1,773)
–
–
122
(13,976)
–
(145)
(6,201)
–
(337)
(16,153)
2,037
(1,753)
–
–
–
–
(70)
66
10,322
–
16
(22)
–
–
(70)
66
10,322
17,164
16
(22)
252,685
(1,427)
(18,421)
8,759
281,066
(1,371)
33,556
68,102
237,430
(1,096)
(15,192)
12,873
271,182
(1,398)
(11,141)
56,648
Cash generated from operations
Income tax paid
Income tax refund
241,596
(45,696)
12,774
381,353
(55,068)
–
234,015
(41,105)
–
315,291
(54,728)
–
Net cash generated from operating activities
208,674
326,285
192,910
260,563
Operating
Change
Change
Change
profit before changes in working capital
in inventories
in trade and other receivables, prepayments and other assets
in trade and other payables
12
11
14
107
Pos Malaysia Berhad
Annual Report 2013
Statements of Cash Flows (cont’d.)
Group
Note
Cash flows from investing activities
Proceeds from disposal of other investments
Proceeds from disposal of property, plant and equipment
Proceeds from disposal of assets held for sale
Purchase of property, plant and equipment
Acquisition of other investments
Interest received
Dividend received
Subscription of additional equity interest in a subsidiary company
Net cash used in investing activities
Cash flows from financing activities
Repayment of hire purchase liabilities
Drawdown of short term borrowing
Interest paid
Dividend paid to owners of the Company
Subscription of shares in a subsidiary company by non-controlling interest
Net cash used in financing activities
Year ended
31.3.2013
RM’000
Company
1.1.2011 to
31.3.2012
RM’000
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
7,078
1,051
7,956
(68,183)
–
17,712
–
–
102,353
1,856
–
(173,723)
(35,890)
19,397
74
–
7,078
1,046
7,956
(57,564)
–
14,582
–
(4,000)
100,853
1,836
–
(170,324)
(35,890)
16,916
41
–
(34,386)
(85,933)
(30,902)
(86,568)
(14)
17,698
(20)
(102,706)
1,000
(43,978)
–
(2,038)
(70,485)
–
–
–
–
(102,706)
–
(43,960)
–
(2,037)
(70,485)
–
(84,042)
(116,501)
(102,706)
(116,482)
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 January
(i)
90,246
388,917
123,851
265,066
59,302
281,489
57,513
223,976
Cash and cash equivalents at 31 March
(i)
479,163
388,917
340,791
281,489
108
www.pos.com.my
(i) Cash and cash equivalents
Cash and cash equivalents included in the statements of cash flows comprise the following statements of financial position amounts:
Group
Cash and bank balances
Liquid investments
Deposits placed with licensed banks and other financial institutions
Less:
Collections on behalf of agency creditors and money order and postal order creditors
Company
Note
2013
RM’000
2012
RM’000
2013
RM’000
2012
RM’000
19
19
19
148,568
373,579
144,320
97,903
285,184
160,989
130,454
254,090
143,551
77,748
198,900
160,000
666,467
544,076
528,095
436,648
(187,304)
(155,159)
(187,304)
(155,159)
479,163
388,917
340,791
281,489
109
Pos Malaysia Berhad
Annual Report 2013
Notes to the Financial Statements
Pos Malaysia Berhad is a public limited liability company, incorporated and domiciled
in Malaysia and is listed on the Main Market of the Bursa Malaysia Securities Berhad.
The address of the principal place of business, which is also the registered office of
the Company, is as follows:
1. Basis of preparation
(a) Statement of compliance
The financial statements of the Group and of the Company have been
prepared in accordance with Malaysian Financial Reporting Standards
(“MFRSs”), International Financial Reporting Standards and the requirements
of the Companies Act, 1965 in Malaysia. These are the Group and Company’s
first financial statements prepared in accordance with MFRSs and MFRS 1,
First-time Adoption of Malaysian Financial Reporting Standards has been
applied.
In the previous financial years, the financial statements of the Group and of
the Company were prepared in accordance with Financial Reporting Standards
(“FRS”) in Malaysia. The transition to MFRS has no financial impact to the
financial statements of the Group and of the Company.
The following are accounting standards, amendments and interpretations of
the MFRS framework that have been issued by the Malaysian Accounting
Standards Board (“MASB”) but have not been adopted by the Group and the
Company.
MFRSs, Interpretations and amendments effective for annual periods
beginning on or after 1 January 2013
• MFRS 10, Consolidated Financial Statements
• MFRS 11, Joint Arrangements
• MFRS 12, Disclosure of Interests in Other Entities
• MFRS 13, Fair Value Measurement
• MFRS 119, Employee Benefits (2011)
• MFRS 127, Separate Financial Statements (2011)
• MFRS 128, Investments in Associates and Joint Ventures (2011)
• IC Interpretation 20, Stripping Costs in the Production Phase of a
Surface Mine
Registered office/Principal place of business
Tingkat 8, Ibu Pejabat Pos
Kompleks Dayabumi
50670 Kuala Lumpur
The consolidated financial statements of the Company as at and for the financial year
ended 31 March 2013 comprise the Company and its subsidiaries (together referred
to as the “Group” and individually referred to as “Group entities”) and the Group’s
interest in associates. The financial statements of the Company as at and for the
financial year ended 31 March 2013 do not include other entities.
The principal activities of the Company during the financial year are to provide postal
and its related services which include receiving and dispatching of postal articles,
postal financial services, dealing in philatelic products and sale of postage stamps.
The principal activities of the subsidiaries are stated in Notes 14 to the financial
statements.
There has been no significant change in the nature of these activities during the
financial year except for a newly incorporated subsidiary, Pos Ar-Rahnu Sdn. Bhd.
which is principally engaged in Ar-Rahnu (Islamic pawn broking).
These financial statements were authorised for issue by the Board of Directors on
19 June 2013.
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1. Basis of preparation (cont’d.)
• MFRS 9, Financial Instruments (2009)
• MFRS 9, Financial Instruments (2010)
• Amendments to MFRS 7, Financial Instruments: Disclosures – Mandatory
Date of MFRS 9 and Transition Disclosures
The Group and Company have early adopted the amendments to MFRS 101,
Presentation of Financial Statements which is effective for annual period
beginning on or after 1 July 2012. The early adoption of the amendments
to MFRS 101 has no impact on the financial statements other than the
presentation format of the statements of profit or loss and other comprehensive
income.
The Group and Company plan to apply the abovementioned standards,
amendments and interpretations:
(a) Statement of compliance (cont’d.)
• Amendments to MFRS 1, First-time Adoption of Malaysian Financial
Reporting Standards – Government Loans
• Amendments to MFRS 1, First-time Adoption of Malaysian Financial
Reporting Standards (Annual Improvements 2009-2011 Cycle)
• Amendments to MFRS 7, Financial Instruments: Disclosures – Offsetting
Financial Assets and Financial Liabilities
• Amendments to MFRS 10, Consolidated Financial Statements: Transition
Guidance
• Amendments to MFRS 11, Joint Arrangements: Transition Guidance
• Amendments to MFRS 12, Disclosure of Interests in Other Entities:
Transition Guidance
• Amendments to MFRS 101, Presentation of Financial Statements (Annual
Improvements 2009-2011 Cycle)
• Amendments to MFRS 116, Property, Plant and Equipment (Annual
• Amendments to MFRS 132, Financial Instruments: Presentation (Annual
• Amendments to MFRS 134, Interim Financial Reporting (Annual
• Amendments to MFRS 10, Consolidated Financial Statements: Investment
Entities
• Amendments to MFRS 12, Disclosure of Interests in Other Entities:
Investment Entities
• Amendments to MFRS 127, Separate Financial Statements (2011):
Investment Entities
• Amendments to MFRS 132, Financial Instruments: Presentation –
Offsetting Financial Assets and Financial Liabilities
• from the annual period beginning on 1 April 2013 for those standards,
amendments or interpretations that are effective for annual periods
beginning on or after 1 January 2013, except for IC Interpretation 20,
which is not applicable to the Group and the Company.
beginning on or after 1 January 2014.
beginning on or after 1 January 2015.
The initial application of the above standards, amendments and interpretations
is not expected to have any material financial impact to the current and prior
periods financial statements of the Group and the Company upon their first
adoption.
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Notes to the Financial Statements (cont’d.)
1. Basis of preparation (cont’d.)
(b) Basis of measurement
2. Significant accounting policies
The financial statements have been prepared on the historical cost basis
other than disclosed in Note 2.
The accounting policies set out below have been applied consistently to the
periods presented in these financial statements and in preparing the opening
MFRS statements of financial position of the Group and of the Company at 1
January 2011 (the transition date to MFRS framework), unless otherwise stated.
(c) Functional and presentation currency
These financial statements are presented in Ringgit Malaysia (“RM”), which
is the Company’s functional currency. All financial information presented in
RM has been rounded to the nearest thousand, unless otherwise stated.
(a) Basis of consolidation
(i)Subsidiaries
(d) Use of estimates and judgements
The preparation of the financial statements in conformity with MFRSs
requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimates are revised and in any future period affected.
There are no significant areas of estimation uncertainty and critical judgements
in applying accounting policies that have significant effect on the amounts
recognised in the financial statements other than those disclosed in the
following notes:
Subsidiaries are entities, including unincorporated entities, controlled by
the Company. The financial statements of subsidiaries are included in
the consolidated financial statements from the date that control
commences until the date that control ceases. Control exists when the
Company has the ability to exercise its power to govern the financial
and operating policies of an entity so as to obtain benefits from its
activities. In assessing control, potential voting rights that presently are
exercisable are taken into account.
Investments in subsidiaries are measured in the Company’s statement
of financial position at cost less any impairment losses. The cost of
investments includes transaction costs.
(ii) Business combinations
• Note 12 – Valuation of investment properties
• Note 23 – Recognition of unutilised tax losses and capital allowances
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Business combinations are accounted for using the acquisition method
from the acquisition date, which is the date on which control is
transferred to the Group.
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2. Significant accounting policies (cont’d.)
(a) Basis of consolidation (cont’d.)
(ii) Business combinations (cont’d.)
Acquisitions on or after 1 January 2011
For acquisitions on or after 1 January 2011, the Group measures
goodwill at the acquisition date as:
(iii) Acquisitions of non-controlling interests
• the fair value of the consideration transferred; plus
• the recognised amount of any non-controlling interests in the
acquiree; plus
• if the business combination is achieved in stages, the fair value of
the existing equity interest in the acquiree; less
• the net recognised amount (generally fair value) of the identifiable
assets acquired and liabilities assumed.
When the excess is negative, a bargain purchase gain is recognised
immediately in profit or loss.
For each business combination, the Group elects whether it measures
the non-controlling interests in the acquiree either at fair value or at
the proportionate share of the acquiree’s identifiable net assets at the
acquisition date.
Transaction costs, other than those associated with the issue of debt or
equity securities, that the Group incurs in connection with a business
combination are expensed as incurred.
Acquisitions before January 2011
As part of its transition to MFRS, the Group elected not to restate those
business combinations that occurred before the date of transition to
MFRSs, i.e. 1 January 2011. Goodwill arising from acquisitions before
1 January 2011 has been carried forward from the previous FRS
framework as at the date of transition.
The Group treats all changes in its ownership interest in a subsidiary
that do not result in a loss of control as equity transactions between
the Group and its non-controlling interest holders. Any difference
between the Group’s share of net assets before and after the change,
and any consideration received or paid, is adjusted to or against Group
reserves.
(iv) Loss of control
Upon the loss of control of a subsidiary, the Group derecognises the
assets and liabilities of the subsidiary, any non-controlling interests and
the other components of equity related to the subsidiary. Any surplus or
deficit arising on the loss of control is recognised in profit or loss. If
the Group retains any interest in the previous subsidiary, then such
interest is measured at fair value at the date that control is lost.
Subsequently it is accounted for as an equity accounted investee or as
an available-for-sale financial asset depending on the level of influence
retained.
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When the Group’s interest in an associate decreases but does not result
in a loss of significant influence, any retained interest is not remeasured. Any gain or loss arising from the decrease in interest is
recognised in profit or loss. Any gains or losses previously recognised in
other comprehensive income are also reclassified proportionately to the
profit or loss.
Investments in associates are measured in the Company’s statement of
financial position at cost less any impairment losses. The cost of the
investment includes transaction costs.
(v)Associates
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Associates are entities, including unincorporated entities, in which the
Group has significant influence, but not control, over the financial and
operating policies.
Investments in associates are accounted for in the consolidated financial
statements using the equity method less any impairment losses. The
cost of the investment includes transaction costs. The consolidated
financial statements include the Group’s share of the profit or loss and
other comprehensive income of the associates, after adjustments if any,
to align the accounting policies with those of the Group, from the date
that significant influence commences until the date that significant
influence ceases.
When the Group’s share of losses exceeds its interest in an associate,
the carrying amount of that interest including any long-term investments
is reduced to zero, and the recognition of further losses is discontinued
except to the extent that the Group has an obligation or has made
payments on behalf of the associate.
When the Group ceases to have significant influence over an associate,
it is accounted for as a disposal of the entire interest in that associate,
with a resulting gain or loss being recognised in profit or loss. Any
retained interest in the former associate at the date when significant
influence is lost is re-measured at fair value and this amount is
regarded as the initial carrying amount of a financial asset.
(vi) Non-controlling interests
Non-controlling interests at the end of reporting period, being the equity
in a subsidiary not attributable directly or indirectly to the equity
holders of the Company, are presented in the consolidated statement of
financial position and statement of changes in equity within equity,
separately from equity attributable to the owners of the Company. Noncontrolling interests in the results of the Group is presented in the
consolidated statement of profit or loss and other comprehensive income
as an allocation of the profit or loss and the comprehensive income for
the year between non-controlling interest and owners of the Company.
Losses applicable to the non-controlling interests in a subsidiary are
allocated to the non-controlling interests even if doing so causes the
non-controlling interests to have a deficit balance.
(vii)Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and
expenses arising from intra-group transactions, are eliminated in
preparing the consolidated financial statements.
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(vii)Transactions eliminated on consolidation (cont’d.)
Unrealised gains arising from transactions with associates are eliminated
against the investment to the extent of the Group’s interest in the
associates. Unrealised losses are eliminated in the same way as
unrealised gains, but only to the extent that there is no evidence of
impairment.
(c) Financial instruments
(i) Initial recognition and measurement
A financial asset or a financial liability is recognised in the statements
of financial position when, and only when, the Group or the Company
becomes a party to the contractual provisions of the instrument.
A financial instrument is recognised initially, at its fair value plus, in
the case of a financial instrument not at fair value through profit or
loss, transaction costs that are directly attributable to the acquisition or
issue of the financial instrument.
(b) Foreign currency
(ii) Financial instrument categorises and subsequent measurement
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional
currencies of Group entities at exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the
reporting period are retranslated to the functional currency at the exchange
rate at that date.
Non-monetary assets and liabilities denominated in foreign currencies are not
retranslated at the end of the reporting date, except for those that are
measured at fair value are retranslated to the functional currency at the
exchange rate at the date that the fair value was determined.
The Group and the Company categorise financial instruments as follows:
Financial assets
(a) Financial assets at fair value through profit or loss
Fair value through profit or loss category comprises financial assets
that are held for trading, including derivatives (except for a
derivative that is a financial guarantee contract or a designated and
effective hedging instrument) or financial assets that are specifically
designated into this category upon initial recognition.
Other financial assets classified as fair value through profit or loss
is subsequently measured at their fair values with the gain or loss
recognised in profit or loss.
Foreign currency differences arising on retranslation are recognised in profit
or loss, except for differences arising on the retranslation of available-for-sale
equity instruments which are recognised in other comprehensive income.
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(c) Financial instruments (cont’d.)
On derecognition, the cumulative gain or loss recognised in other
comprehensive income is reclassified from equity into profit or loss.
Interest calculated for a debt instrument using the effective
interest method is recognised in profit or loss.
(ii) Financial instrument categorises and subsequent measurement (cont’d.)
(b) Held-to-maturity investments
Held-to-maturity investments category comprises debt instruments
that are quoted in an active market and the Group or the Company
has the positive intention and ability to hold them to maturity.
Financial assets categorised as held to maturity investments are
subsequently measured at amortised cost using the effective
interest method.
(c) Loans and receivables
Loans and receivables category comprises debts instruments that
are not quoted in an active market. Financial assets categorised as
loans and receivables are subsequently measured at amortised cost
using the effective interest method.
(d) Available-for–sale financial assets
Available-for-sale category comprises investments in equity and
debt securities instruments that are not held for trading.
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Investments in equity instruments that do not have a quoted
market price in an active market and whose fair value cannot be
reliably measured are measured at cost. Other financial assets
categorised as available-for-sale are subsequently measured at their
fair values with the gain or loss recognised in other comprehensive
income, except for impairment losses, foreign exchange gains and
losses arising from monetary items and gains and losses of hedged
items attributable to hedge risks of fair value hedges which are
All financial assets, except for those measured at fair value through profit
or loss, are subject to review for impairment (see Note 2(k)(i)).
Financial liabilities
All financial liabilities are subsequently measured at amortised cost
other than those categorised as fair value through profit and loss.
Fair value through profit and loss category comprises of financial
liabilities that are held for trading, derivatives (except for a derivative
that is a financial guarantee contract or a designated and effective
hedging instrument) or financial liabilities that are specifically designated
into this category upon initial recognition.
Other financial liabilities categorised as fair value though profit or loss
are subsequently measured at their fair values with the gain or loss
(iii) Regular way purchase or sale of financial assets
A regular way purchase or sale is a purchase or sale of a financial asset
under a contract whose terms require delivery of the asset within the
time frame established generally by regulation or convention in the
marketplace concerned.
A regular way purchase or sale of financial assets is recognised and
derecognised, as applicable, using trade date accounting. Trade date
accounting refers to:
(a) the recognition of an asset to be received and the liability to pay
for it on the trade date, and
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Cost includes expenditures that are directly attributable to the acquisition
of the asset and any other costs directly attributable to bringing the
asset to working condition for its intended use, and the costs of
dismantling and removing the items and restoring the site on which they
are located. The cost of self-constructed assets also includes the cost
of materials and direct labour. For qualifying assets, borrowing costs are
capitalised in accordance with the accounting policy on borrowing costs.
Purchased software that is integral to the functionality of the related
equipment is capitalised as part of that equipment.
The cost of property, plant and equipment recognised as a result of a
business combination is based on fair value at acquisition date. The fair
value of property is the estimated amount for which a property could
be exchanged between knowledgeable willing parties in an arm’s length
transaction after proper marketing wherein the parties had each acted
knowledgeably, prudently and without compulsion. The fair value of
other items of property, plant and equipment is based on the quoted
market prices for similar items when available and replacement cost
when appropriate.
When significant parts of an item of property, plant and equipment have
different useful lives, they are accounted for as separate items (major
components) of property, plant and equipment.
The gain or loss on disposal of an item of property, plant and equipment
is determined by comparing the proceeds from disposal with the
carrying amount of property, plant and equipment and is recognised net
within “other income” or “other expenses” respectively in profit or loss.
(c) Financial instruments (cont’d.)
(iii) Regular way purchase or sale of financial assets (cont’d.)
(b) derecognition of an asset that is sold, recognition of any gain or
loss on disposal and the recognition of a receivable from the buyer
for payment on the trade date.
(iv)Derecognition
A financial asset or part of it is derecognised when, and only when the
contractual rights to the cash flows from the financial asset expire or
the financial asset is transferred to another party without retaining
control or substantially all risks and rewards of the asset. On derecognition
of a financial asset, the difference between the carrying amount and the
sum of the consideration received (including any new asset obtained
less any new liability assumed) and any cumulative gain or loss that
had been recognised in equity is recognised in the profit and loss.
A financial liability or part of it is derecognised when, and only when,
the obligation specified in the contract is discharged or cancelled or
expires. On derecognition of a financial liability, the difference between
the carrying amount of the financial liability extinguished or transferred
to another party and the consideration paid, including any non-cash
assets transferred or liabilities assumed, is recognised in profit and loss.
(d) Property, plant and equipment
(i) Recognition and measurement
Land and capital work in progress are measured at cost. Other items of
property, plant and equipment are measured at cost less any accumulated
depreciation and any accumulated impairment losses.
(ii) Subsequent costs
The cost of replacing a component of an item of property, plant and
equipment is recognised in the carrying amount of the item if it is
probable that the future economic benefits embodied within the component
will flow to the Group or the Company, and its cost can be measured
reliably. The carrying amount of the replaced component is derecognised
to profit or loss. The costs of the day-to-day servicing of property, plant
and equipment are recognised in profit or loss as incurred.
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(e) Leased assets
(d) Property, plant and equipment (cont’d.)
(i) Finance lease
(iii)Depreciation
Depreciation is based on the cost of an asset less its residual value.
Significant components of individual assets are assessed, and if a
component has a useful life that is different from the remainder of that
asset, then that component is depreciated separately.
Depreciation is recognised in profit or loss on a straight-line basis over
the estimated useful lives of each component of an item of property,
plant and equipment. Leased assets are depreciated over the shorter of
the lease term and their useful lives unless it is reasonably certain that
the Group will obtain ownership by the end of the lease term. Freehold
land is not depreciated. Property, plant and equipment under construction
are not depreciated until the assets are ready for their intended use.
The estimated useful lives for the current and comparative years are as
follows:
Leasehold land
Buildings
Building improvements and renovations
Plant and machinery
Motor vehicles
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30 – 99 years
50 years
2 – 10 years
10 – 20 years
5 years
3 – 10 years
Depreciation methods, useful lives and residual values are reviewed at
end of the reporting period, and adjusted as appropriate.
Leases in terms of which the Group and the Company assume
substantially all the risks and rewards of ownership are classified as
finance leases. Upon initial recognition, the leased asset is measured at
an amount equal to the lower of its fair value and the present value of
the minimum lease payments. Subsequent to initial recognition, the
asset is accounted for in accordance with the accounting policy
applicable to that asset.
Minimum lease payments made under finance leases are apportioned
between the finance expense and the reduction of the outstanding
liability. The finance expense is allocated to each period during the
lease term so as to produce a constant periodic rate of interest on the
remaining balance of the liability. Contingent lease payments are
accounted for by revising the minimum lease payments over the
remaining term of the lease when the lease adjustment is confirmed.
Leasehold land which in substance is a finance lease is classified as
property, plant and equipment.
(ii) Operating lease
Leases, where the Group or the Company does not assume substantially
all the risks and rewards of ownership are classified as operating leases
and, except for property interest held under operating lease, the leased
assets are not recognised in the Group’s statements of financial position.
Property interest held under an operating lease, which is held to earn
rental income or for capital appreciation or both, is classified as
investment property and measured using fair value model.
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property under construction is not reliably determinable, the investment
property under construction is measured at cost until either its fair
value becomes reliably determinable or construction is complete,
whichever is earlier.
(e) Leased assets (cont’d.)
(ii) Operating lease (cont’d.)
Payments made under operating leases are recognised in profit or loss
on a straight-line basis over the term of the lease. Lease incentives
received are recognised in profit or loss as an integral part of the total
lease expense, over the term of the lease. Contingent rentals are
charged to profit or loss in the reporting period in which they are
incurred. Leasehold land which in substance is an operating lease is
classified as prepaid lease payments.
Cost includes expenditure that is directly attributable to the acquisition
of the investment property. The cost of self-constructed investment
property includes the cost of materials and direct labour, any other
costs directly attributable to bringing the investment property to a
working condition for their intended use and capitalised borrowing costs.
An investment property is derecognised on its disposal, or when it is
permanently withdrawn from use and no future economic benefits are
expected from its disposal. The difference between the net disposal
proceeds and the carrying amount is recognised in profit or loss in the
period in which the item is derecognised.
(f)Goodwill
Goodwill arises on business combinations is measured at cost less any
accumulated impairment losses. Goodwill with indefinite useful lives is
allocated to cash-generating unit and is tested for impairment annually and
more frequently if events or changes in circumstances indicate that it might
be impaired.
(ii) Reclassification to/from investment property
When an item of property, plant and equipment is transferred to
investment property following a change in its use, any difference arising
at the date of transfer between the carrying amount of the item
immediately prior to transfer and its fair value is recognised in other
comprehensive income and accumulated in equity as revaluation
reserve. However, if a fair value gain reverses a previous impairment
loss, the gain is recognised in profit or loss. Upon disposal of an
investment property, any surplus previously recorded in equity is
transferred to retained earnings; the transfer is not made through profit
or loss.
When the use of a property changes such that it is reclassified as
property, plant and equipment or inventories, its fair value at the date
of reclassification becomes its cost for subsequent accounting.
(g) Investment properties
(i) Investment properties carried at fair value
Investment properties are properties which are owned or held under a
leasehold interest to earn rental income or for capital appreciation or
for both, but not for sale in the ordinary course of business, use in the
production or supply of goods or services or for administrative purposes.
Investment properties are measured initially at cost and subsequently at
fair value with any change therein recognised in profit or loss for the
period in which they arise. Where the fair value of the investment
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When rent reviews or lease renewals are pending with anticipated
reversionary increases, it is assumed that all notices and where
appropriate counter-notices, have been served validly and within the
appropriate time.
Investment property under construction is valued by estimating the fair
value of the completed investment property and then deducting from
that amount the estimated costs to complete construction, financing
costs and a reasonable profit margin.
(g) Investment properties (cont’d.)
(iii) Determination of fair value
An external, independent valuation firm, having appropriate recognised
professional qualifications and recent experience in the location and
category of property being valued, values the Group’s investment
property portfolio annually.
The fair values are based on market values, being the estimated amount
for which a property could be exchanged on the date of the valuation
between a willing buyer and a willing seller in an arm’s length transaction
after proper marketing wherein the parties had each acted knowledgeably.
(h)Inventories
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Inventories are measured at the lower of cost and net realisable value.
In the absence of current prices in an active market, the valuations are
prepared by considering the estimated rental value of the property. A
market yield is applied to the estimated rental value to arrive at the
gross property valuation. When actual rents differ materially from the
estimated rental value, adjustments are made to reflect actual rents.
The cost of inventories is measured based on weighted average cost formula,
and includes expenditure incurred in acquiring the inventories and other
costs incurred in bringing them to their existing location and condition.
Net realisable value is the estimated selling price in the ordinary course of
business, less the estimated costs of completion and the estimated costs
necessary to make the sale.
Valuations reflect, where appropriate:
(i) Assets held for sale or distribution to owners
• the type of tenants actually in occupation or responsible for meeting
lease commitments or likely to be in occupation after letting vacant
accommodation, and the market’s general perception of their
creditworthiness;
• the allocation of maintenance and insurance responsibilities between
the Group and the lessee; and
• the remaining economic life of the property.
Assets comprising assets or disposal group comprising assets and liabilities
that are expected to be recovered primarily through sale or distribution to
owners rather than through continuing use, are classified as held for sale or
distribution.
Immediately before classification as held for sale or distribution, the assets,
or components of a disposal group, are remeasured in accordance with the
Group’s accounting policies. Thereafter generally the assets, or disposal
group, are measured at the lower of their carrying amount and fair value less
costs to sell.
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(k)Impairment
(i) Assets held for sale or distribution to owners (cont’d.)
(i) Financial assets
Any impairment loss on a disposal group is first allocated to goodwill, and
then to remaining assets and liabilities on pro rata basis, except that no loss
is allocated to inventories, financial assets, deferred tax assets, employee
benefit assets and investment property, which continue to be measured in
accordance with the Group’s accounting policies. Impairment losses on initial
classification as held for sale or distribution and subsequent gains or losses
on remeasurement are recognised in profit or loss. Gains are not recognised
in excess of any cumulative impairment loss.
Intangible assets and property, plant and equipment once classified as held
for sale or distribution are not amortised or depreciated. In addition, equity
accounting of equity-accounted associates ceases once classified as held for
sale or distribution.
All financial assets (except for financial assets categorised as fair value
through profit or loss, investments in subsidiaries and investments in
associates) are assessed at each reporting date whether there is any
objective evidence of impairment as a result of one or more events
having an impact on the estimated future cash flows of the asset.
Losses expected as a result of future events, no matter how likely, are
not recognised. For an investment in equity instrument, a significant or
prolonged decline in the fair value below its cost is an objective
evidence of impairment. If any such objective evidence exists, then the
financial assets recoverable amount is estimated.
An impairment loss in respect of loans and receivables and held-tomaturity investments is recognised in profit or loss and is measured as
the difference between the asset’s carrying amount and the present
value of estimated future cash flows discounted at the asset’s original
effective interest rate. The carrying amount of the asset is reduced
through the use of an allowance account.
An impairment loss in respect of available-for-sale financial assets is
recognised in profit or loss and is measured as the difference between
the asset’s acquisition cost (net of any principal repayment and
amortisation) and the financial asset’s current fair value, less any
impairment loss previously recognised. Where a decline in the fair value
of an available-for-sale financial asset has been recognised in other
comprehensive income, the cumulative loss in other comprehensive
income is reclassified from equity and recognised to profit or loss.
(j) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, balances and deposits
with banks and highly liquid investments which have an insignificant risk of
changes in value with original maturities of three months or less, and are
used by the Group and the Company in the management of their short term
commitments.
For the purpose of the statements of cash flows, cash and cash equivalents
are presented net of cash held for the purpose of collections on behalf of
agency and money order and postal order creditors.
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use that are largely independent of the cash inflows of other assets or
cash-generating unit. The goodwill acquired in a business combination,
for the purpose of impairment testing, is allocated to group of cashgenerating units that are expected to benefit from the synergies of the
combination.
(k) Impairment (cont’d.)
(i) Financial assets (cont’d.)
An impairment loss in respect of unquoted equity instrument that is
carried at cost is recognised in profit or loss and is measured as the
difference between the financial asset’s carrying amount and the present
value of estimated future cash flows discounted at the current market
rate of return for a similar financial asset.
Impairment losses recognised in profit or loss for an investment in an
equity instrument classified as available-for-sale is not reversed through
profit or loss.
If, in a subsequent year, the fair value of a debt instrument increases
and the increase can be objectively related to an event occurring after
the impairment loss was recognised in profit or loss, the impairment
loss is reversed, to the extent that the asset’s carrying amount does not
exceed what the carrying amount would have been had the impairment
not been recognised at the date the impairment is reversed. The amount
of the reversal is recognised in profit or loss.
(ii) Other assets
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The carrying amounts of other assets (except for inventories, deferred
tax assets, investment properties is measured at fair value and noncurrent assets (or disposal groups) classified as held for sale) are
reviewed at the end of each reporting period to determine whether there
is any indication of impairment. If any such indication exists, then the
asset’s recoverable amount is estimated.
For the purpose of impairment testing, assets are grouped together into
the smallest group of assets that generates cash inflows from continuing
The recoverable amount of an asset or cash-generating unit is the
greater of its value in use and its fair value less costs to sell. In
assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific
to the asset or cash-generating unit.
An impairment loss is recognised if the carrying amount of an asset or
its related cash-generating unit exceeds its estimated recoverable
amount.
Impairment losses are recognised in profit or loss. Impairment losses
recognised in respect of cash-generating units are allocated first to
reduce the carrying amount of any goodwill allocated to the cashgenerating units (group of cash-generating units) and then to reduce the
carrying amount of the other assets in the cash-generating unit (groups
of cash-generating units) on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of
other assets, impairment losses recognised in prior years are assessed
at the end of each reporting period for any indications that the loss has
decreased or no longer exists. An impairment loss is reversed if there
has been a change in the estimates used to determine the recoverable
amount since the last impairment loss was recognised. An impairment
loss is reversed only to the extent that the asset’s carrying amount does
not exceed the carrying amount that would have been determined, net
of depreciation or amortisation, if no impairment loss had been
recognised. Reversals of impairment losses are credited to profit or loss
in the financial year in which the reversals are recognised.
www.pos.com.my
(l) Equity instruments
A liability is recognised for the amount expected to be paid under shortterm cash bonus or profit-sharing plans if the Group has a present legal
or constructive obligation to pay this amount as a result of past service
provided by the employee and the obligation can be estimated reliably.
Instruments classified as equity are measured at cost on initial recognition
and are not remeasured subsequently.
(ii) State plans
(i) Issue expenses
Costs directly attributable to the issue of instruments classified as
equity are recognised as a deduction from equity.
The Group’s contributions to Employees’ Provident Fund are charged to
profit or loss in the financial year to which they relate. Once the
contributions have been paid, the Group has no further payment
obligations.
(ii) Ordinary shares
(n)Provisions
Ordinary shares are classified as equity.
(iii) Preference share capital
Preference share capital is classified as equity if it is non-redeemable,
or is redeemable but only at the Company’s option, and any dividends
are discretionary. Dividends thereon are recognised as distributions
within equity.
Preference share capital is classified as financial liability if it is
redeemable on a specific date or at the option of the shareholders, or
if dividend payments are not discretionary. Dividends thereon are
recognised as interest expense in profit and loss as accrued.
A provision is recognised if, as a result of a past event, the Group has a
present legal or constructive obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to settle
the obligation. Provisions are determined by discounting the expected future
cash flows at a pre-tax rate that reflects current market assessments of the
time value of money and the risks specific to the liability. The unwinding of
the discount is recognised as finance cost.
Contingent liabilities
(m) Employee benefits
(i) Short-term employee benefits
Where it is not probable that an outflow of economic benefits will be
required, or the amount cannot be estimated reliably, the obligation is not
recognised in the statement of financial position and is disclosed as a
contingent liability, unless the probability of outflow of economic benefits is
remote. Possible obligations, whose existence will only be confirmed by the
occurrence or non-occurrence of one or more future events, are also disclosed
as contingent liabilities unless the probability of outflow of economic benefits
is remote.
Short-term employee benefit obligations in respect of salaries, annual
bonuses, paid annual leave and sick leave are measured on an
undiscounted basis and are expensed as the related service is provided.
123
Pos Malaysia Berhad
Annual Report 2013
Grants that compensate the Group for expenses incurred are recognised
in profit or loss as other income on a systematic basis in the same
period in which the expenses are recognised.
Grants that compensate the Group for the cost of an asset are
recognised in profit or loss on a systematic basis over the useful life of
the asset.
(o) Revenue and other income
(i)Revenue
Revenue from mail, courier services, remittances and agency services
and other services are recognised in profit or loss upon performance of
services.
(ii) Other income
Interest income
Interest income is recognised as it accrues using the effective interest
method in profit or loss.
(p) Borrowing costs
Borrowing costs that are not directly attributable to the acquisition,
construction or production of a qualifying asset are recognised in profit or
loss using the effective interest method.
Borrowing
production
substantial
capitalised
The capitalisation of borrowing costs as part of the cost of a qualifying asset
commences when expenditure for the asset is being incurred, borrowing costs
are being incurred and activities that are necessary to prepare the asset for
its intended use or sale are in progress. Capitalisation of borrowing costs is
suspended or ceases when substantially all the activities necessary to prepare
the qualifying asset for its intended use or sale are interrupted or completed.
Investment income earned on the temporary investment of specific borrowings
pending their expenditure on qualifying assets is deducted from the borrowing
costs eligible for capitalisation.
Dividend income
Dividend income is recognised in profit or loss on the date that the
Group’s or the Company’s right to receive payment is established.
Rental income
Rental income is recognised in profit or loss on a straight-line basis over
the term of the lease. Lease incentives granted are recognised as an
integral part of the total rental income, over the term of the lease.
Rental income from subleased property is recognised as other income.
Government grants
124
Government grants are recognised initially as deferred income at fair
value when there is reasonable assurance that they will be received and
the Group will comply with the conditions associated with the grant and
are then recognised in profit or loss as other income on a systematic
basis over the useful life of the asset.
costs directly attributable to the acquisition, construction or
of qualifying assets, which are assets that necessarily take a
period of time to get ready for their intended use or sale, are
as part of the cost of those assets.
www.pos.com.my
Deferred tax assets and liabilities are offset if there is a legally enforceable
right to offset current tax liabilities and assets, and they relate to income
taxes levied by the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current tax liabilities and
assets on a net basis or their tax assets and liabilities will be realised
simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future
taxable profits will be available against which the temporary difference can
be utilised. Deferred tax assets are reviewed at the end of each reporting
period and are reduced to the extent that it is no longer probable that the
related tax benefit will be realised.
Unutilised reinvestment allowance and investment tax allowance, being tax
incentives that is not a tax base of an asset, is recognised as a deferred tax
asset to the extent that it is probable that the future taxable profits will be
available against the unutilised tax incentive can be utilised.
(q) Tax expense
Tax expense comprises current and deferred tax. Current and deferred tax are
recognised in profit or loss except to the extent that it relates to a business
combination or items recognised directly in equity or other comprehensive
income.
Current tax is the expected tax payable or receivable on the taxable income
or loss for the year, using tax rates enacted or substantively enacted by the
end of the reporting period, and any adjustment to tax payable in respect of
previous periods.
Deferred tax is recognised using the liability method, providing for temporary
differences between the carrying amounts of assets and liabilities in the
statement of financial position and their tax bases. Deferred tax is not
recognised for the following temporary differences: the initial recognition of
goodwill, the initial recognition of assets or liabilities in a transaction that is
not a business combination and that affects neither accounting nor taxable
profit or loss. Deferred tax is measured at the tax rates that are expected
to be applied to the temporary differences when they reverse, based on the
laws that have been enacted or substantively enacted by the end of the
reporting period.
Where investment properties are carried at their fair value in accordance with
the accounting policy set out in Note 2(g), the amount of deferred tax
recognised is measured using the tax rates that would apply on sale of those
assets at their carrying value at the reporting date unless the property is
depreciable and is held with the objective to consume substantially all of
the economic benefits embodied in the property over time, rather than
through sale. In all other cases, the amount of deferred tax recognised is
measured based on the expected manner of realisation or settlement of the
carrying amount of the assets and liabilities, using tax rates enacted of
substantively enacted at the reporting period. Deferred tax assets and
liabilities are not discounted.
(s) Earnings per ordinary share
(r)Zakat
This represents business zakat. Zakat expense is calculated based on certain
percentage of the net current asset or profit after taxation. Zakat is
recognised as other operating expense in profit or loss.
The Group presents basic earnings per share data for its ordinary shares
(“EPS”). Basic EPS is calculated by dividing the profit or loss attributable
to ordinary shareholders of the Company by the weighted average number of
ordinary shares outstanding during the year.
125
Pos Malaysia Berhad
Annual Report 2013
(t) Operating segments
An operating segment is a component of the Group that engages in business
activities from which it may earn revenues and incur expenses, including
revenues and expenses that relate to transactions with any of the Group’s
other components. All operating segment’s operating results are reviewed
regularly by the chief operating decision maker, which in this case is the
Chief Executive Officer of the Group, to make decision about resources to be
allocated to the segments and assess its performance, and for which discrete
financial information is available.
3. Vesting of business
On 1 January 1992, all property, rights and liabilities, other than land and
buildings and certain assets, to which Jabatan Perkhidmatan Pos Malaysia
(“JPPM”) was entitled or subject to immediately before that vesting date, became
the property, rights and liabilities of the Company by virtue of Section 3 of the
Postal Services (Successor Company) Act 1991. The value of assets and the
amount of liabilities of JPPM transferred to and vested in the Company were
those stated in the financial statements of JPPM as at 31 December 1991. In
accordance with Section 7(4) of the said Act, for the purposes of any statutory
financial statements of the Group and of the Company, the amount to be included
in respect of any item shall be determined as if anything done by JPPM whether
by way of acquiring, revaluing or disposing of any assets or incurring, revaluing
or discharging any liability, or by carrying any amount to any provision of reserve,
or otherwise, had been done by the Company.
4.Revenue
Group
Mail
Courier
Retail
Others
126
Company
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
724,486
322,665
175,290
47,070
921,527
308,687
202,597
48,849
721,559
319,345
174,508
4,479
918,490
305,897
202,597
8,243
1,269,511
1,481,660
1,219,891
1,435,227
www.pos.com.my
5. Profit before tax
Group
Note
Company
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
460
425
280
280
281
–
–
85,652
67
535
2,531
87,262
188
–
–
82,157
67
472
–
84,373
104
20
–
2,038
122
–
–
2,037
3,424
–
–
–
556
13,594
10,322
758
–
2
570
–
–
–
547
11,976
10,322
758
17,164
2
–
6,188
186
16
6,343
–
–
6,114
–
16
6,343
–
6,322
13,064
171
280
12,114
20,128
225
1,066
7,708
18,609
131
262
10,786
25,644
183
1,013
Profit before tax is arrived at after charging:
Auditors’ remuneration
– Audit fees
KPMG Malaysia
– Non-audit fees
KPMG Malaysia
Local affiliates of KPMG Malaysia
Depreciation for property, plant and equipment
Fair value loss through profit or loss:
Finance costs
Impairment loss:
– Trade receivables
– Financial assets designated as available-for-sale
– Other receivables
– Investment in a subsidiary
Inventories written off
Loss on disposal of other
investments
Operating licence fee
Property, plant and equipment written off
Rental
– Office and computer equipment
– Land and buildings
– Machinery
– Motor vehicles
12
11
27
11
127
Pos Malaysia Berhad
Annual Report 2013
5. Profit before tax (cont’d.)
Group
Note
Company
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
585,485
85,865
672,617
94,396
574,295
84,334
658,450
92,689
66
–
66
–
3,031
1,592
–
4,520
–
74
3,031
–
–
4,520
–
41
–
6,201
70
145
283
–
–
1,773
–
6,201
70
145
337
–
–
1,753
4,490
12,714
8,020
11,133
3,990
9,986
7,500
8,653
928
67
818
44
–
1,924
859
67
808
–
–
2,019
1,008
2,907
–
1,064
2,852
22
–
2,884
–
–
2,852
22
Profit before tax is arrived at after charging (cont’d.):
Staff costs (excluding key management personnel)
– Salaries, bonuses and allowances
– Contributions to Employees’ Provident Fund
Unrealised foreign exchange loss
and after crediting:
Amortisation of government grants
Change on fair value of investment properties
Dividend income (gross)
Fair value gain through profit or loss:
Gain on disposal of asset held for sale
Gain on disposal of other investments
Gain on disposal of property, plant and equipment
Interest income:
– Unquoted debentures in Malaysia
– Others
Reversal of impairment loss on financial assets:
– Trade receivables
– Other receivables
Realised foreign exchange gain
Rental income:
– Investment properties
– Operating lease other than those relating to investment properties
Unrealised foreign exchange gain
128
12
www.pos.com.my
5. Profit before tax (cont’d.)
Included in profit before tax is zakat assessment as follows:
Group and Company
Year ended
31.3.2013
RM’000
Zakat assessment based on net current assets or results of the year/period
– Current
– Over provision in prior years
1.1.2011 to
31.3.2012
RM’000
2,052
(3,104)
4,884
–
(1,052)
4,884
6. Other comprehensive income
2013
Before
tax
RM’000
Items that will not be reclassified subsequently to profit or loss
Revaluation of property, plant and equipment on transfer of
properties to investment properties
–
2012
Tax (expense)
/benefit
RM’000
–
Net
of tax
RM’000
Before
tax
RM’000
–
1,144
Tax (expense)
/benefit
RM’000
–
Net
of tax
RM’000
1,144
129
Pos Malaysia Berhad
Annual Report 2013
7. Key management personnel compensation
The key management personnel compensations are as follows:
Group
Directors
– Fees
– Remuneration
Other key management personnel
– Remuneration
130
Company
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
733
117
557
2,213
733
117
538
2,209
850
2,770
850
2,747
8,879
10,930
8,074
10,272
9,729
13,700
8,924
13,019
Other key management personnel comprises persons other than the Directors of Group entities, having authority and responsibility for planning, directing and controlling the
activities of the entity either directly or indirectly.
www.pos.com.my
8. Tax expense
Group
Year ended
31.3.2013
RM’000
Current tax expense:
Current year
Over provision in prior years/period
Deferred tax expense:
Origination and (reversal) of temporary differences
Under provision in prior years/period
Total tax expense
Company
1.1.2011 to
31.3.2012
RM’000
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
49,692
(27,989)
61,397
(5,975)
43,838
(14,012)
59,620
(5,957)
21,703
55,422
29,826
53,663
6,138
12,723
(2,231)
8,170
5,205
12,508
(2,067)
8,094
18,861
5,939
17,713
6,027
40,564
61,361
47,539
59,690
131
Pos Malaysia Berhad
Annual Report 2013
8. Tax expense (cont’d.)
A reconciliation of tax expense applicable to profit before taxation at the statutory income tax rate to tax expense at the effective tax rate of the Group and of the Company
are as follows:
Group
Profit before tax
Tax calculated using Malaysian tax rate of 25% (2012: 25%)
Tax exempt income
Expenses not deductible for tax purposes
Unrecognised / (recognised) deferred tax assets
Under/(Over) provision in prior years/period
– Current tax
– Deferred tax
Tax expense
Company
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
191,869
200,202
175,477
175,576
47,967
(600)
7,954
509
50,051
(1,564)
10,801*
(122)
43,869
(1,638)
6,812
–
43,894
(1,057)
14,716*#
–
55,830
59,166
49,043
57,553
(27,989)
12,723
40,564
(5,975)
8,170
61,361
(14,012)
12,508
47,539
(5,957)
8,094
59,690
* Included tax effect on impairment losses in relation to financial assets designated as Available-For-Sale of RM10.3 million.
Included tax effect on the impairment loss on investment of subsidiary of RM17.2 million.
#
132
Included in the over provision of income tax in prior years of the Group is an amount of RM12,730,000 which was refunded by the Malaysian Inland Revenue Board
(“MIRB”) during the financial year. This refund was made after MIRB agreed to set off the unutilised business losses of a subsidiary against its statutory business income
due to a substantial change in the shareholding in the subsidiary in the year of assessment (“YA”) 2006.
www.pos.com.my
9. Earnings per ordinary share
Basic earnings per ordinary share
The earnings per ordinary share for the financial year has been calculated based on the profit attributable to ordinary shareholders of RM151,726,000 (2012: RM138,841,000)
and a weighted average number of ordinary shares in issue during the financial year of 537,026,085 (2012: 537,026,085).
10.Dividends
Dividends recognised in the current year by the Company are:
Sen
per share
(net of tax)
2013
First and final dividend in respect of financial period ended 31 March 2012
Interim dividend in respect of financial year ended 31 March 2013
13.1
6.0
Total
amount
RM’000
70,485
32,221
102,706
2012
First and final dividend in respect of financial year ended 31 December 2010
Special dividend in respect of financial year ended 31 December 2010
7.5
5.6
40,277
30,208
70,485
After the reporting period the following dividend was proposed by the Directors. This dividend will be recognised in subsequent financial year upon approval by the owners
of the Company.
Sen
per share
(net of tax)
Final dividend
7.13
Total
amount
RM’000
38,263
133
Pos Malaysia Berhad
Annual Report 2013
11.Property, plant and equipment
Group
Cost
At 1 January 2011
Additions
Disposals
Transfers
Transfer to investment properties:
– Offset of accumulated
depreciation
– Revaluation of property
transferred
– Transfer of carrying amount
Transfer to asset classified
as held for sale
134
Leasehold
land and
buildings
RM’000
Government
leasehold
land and
buildings
RM’000
Freehold
land
RM’000
183,716
–
–
–
210,799
–
–
–
2,276
–
–
–
(2,308)
–
–
–
(7,258)
–
–
–
–
(1,801)
–
–
Building
improvements
and
Buildings renovations
RM’000
RM’000
35,114
–
–
–
Plant
and
machinery
RM’000
Furniture
and fittings,
office and
computer
Motor
equipment
vehicles
RM’000
RM’000
167,619
4,103
(728)
22,307
Total
RM’000
106,046
155,765
–
(228,458)
975,289
173,723
(8,381)
–
93,755
13,344
–
147,579
21,702
32
–
47,331
(2,380)
–
–
–
–
–
(4,688)
1,144
(8,160)
–
–
–
–
–
–
–
–
–
–
1,144
(15,418)
–
–
–
–
–
(1,801)
–
154,262
479
(7,653)
11,241
Capital
work-inprogress
RM’000
Additions
Disposals
Written off
Transfers
172,349
–
–
–
–
210,799
–
–
–
–
2,276
–
–
–
–
25,718
–
(113)
–
–
254,678
3,970
(4,136)
(1,359)
27,688
69,065
45
–
–
1,570
158,329
9,558
(783)
–
–
193,301
6,734
(299)
(16)
15,686
33,353
47,876
–
–
(44,944)
1,119,868
68,183
(5,331)
(1,375)
–
At 31 March 2013
172,349
210,799
2,276
25,605
280,841
70,680
167,104
215,406
36,285
1,181,345
www.pos.com.my
11.Property, plant and equipment (cont’d.)
Group
Furniture
and fittings,
office and
computer
Motor
equipment
vehicles
RM’000
RM’000
Capital
work-inprogress
RM’000
Total
RM’000
14,631
–
96,624
–
97,872
–
–
22,273
401,056
22,273
38,283
18,757
–
14,631
3,162
–
96,624
25,713
(7,588)
97,872
24,180
(710)
22,273
–
–
423,329
87,262
(8,298)
–
–
–
–
–
(4,688)
–
–
–
–
–
–
(46)
–
–
6,871
–
57,040
–
17,793
–
114,749
–
121,342
–
–
22,273
475,286
22,273
–
6,871
57,040
17,793
114,749
121,342
22,273
497,559
Building
improvements
and
RM’000
RM’000
Leasehold
land and
buildings
RM’000
Government
leasehold
land and
buildings
RM’000
Freehold
land
RM’000
35,020
–
110,004
–
–
–
8,622
–
38,283
–
35,020
3,399
–
110,004
11,422
–
–
–
–
8,622
629
–
(2,308)
–
–
(2,380)
(46)
–
–
36,065
–
121,426
–
36,065
121,426
Plant
and
machinery
RM’000
Depreciation and impairment loss
At 1 January 2011:
Accumulated depreciation
Accumulated impairment loss
Depreciation for the year
Disposals
Offset of accumulated depreciation
on property transferred to
investment properties
as held for sale
At 31 March 2012/1 April 2012:
135
Pos Malaysia Berhad
Annual Report 2013
Furniture
and fittings,
office and
computer
Motor
equipment
vehicles
RM’000
RM’000
Leasehold
land and
buildings
RM’000
Freehold
land
RM’000
2,939
–
–
9,137
–
–
–
–
–
39,004
–
130,563
–
–
–
7,331
–
77,256
–
21,019
–
133,458
–
146,693
–
–
22,273
555,324
22,273
39,004
130,563
–
7,331
77,256
21,019
133,458
146,693
22,273
577,597
Carrying amounts
At 1 January 2011
148,696
100,795
2,276
26,492
55,472
7,071
57,638
69,747
83,773
551,960
136,284
89,373
2,276
18,847
197,638
51,272
43,580
71,959
11,080
622,309
At 31 March 2013
133,345
80,236
2,276
18,274
203,585
49,661
33,646
68,713
14,012
603,748
Group
(cont’d.)
Disposals
Written off
At 31 March 2013:
136
Building
improvements
and
RM’000
RM’000
Government
leasehold
land and
buildings
RM’000
501
(41)
–
24,773
(3,379)
(1,178)
Plant
and
machinery
RM’000
3,226
–
–
19,428
(719)
–
25,648
(286)
(11)
Capital
work-inprogress
RM’000
–
–
–
Total
RM’000
85,652
(4,425)
(1,189)
www.pos.com.my
Company
Cost
At 1 January 2011
Additions
Disposals
Transfers
as held for sale
Building
improvements
and
RM’000
RM’000
Leasehold
land and
buildings
RM’000
Government
leasehold
land and
buildings
RM’000
Freehold
land
RM’000
99,634
–
–
–
210,799
–
–
–
2,276
–
–
–
25,718
–
–
–
87,535
13,142
–
147,580
6,276
–
–
47,158
–
–
–
–
–
(1,801)
Plant
and
machinery
RM’000
Furniture
and fittings,
office and
computer
Motor
equipment
vehicles
RM’000
RM’000
153,482
192
(7,562)
11,242
–
147,071
4,452
(728)
25,989
–
Capital
work-inprogress
RM’000
Total
RM’000
112,317
152,538
–
(231,969)
845,108
170,324
(8,290)
–
–
(1,801)
Additions
Disposals
Transfers
97,833
–
–
–
210,799
–
–
–
2,276
–
–
–
25,718
–
(113)
–
248,257
523
(4,136)
27,401
53,434
–
–
183
157,354
9,560
(782)
–
176,784
3,998
(283)
15,539
32,886
43,483
–
(43,123)
1,005,341
57,564
(5,314)
–
At 31 March 2013
97,833
210,799
2,276
25,605
272,045
53,617
166,132
196,038
33,246
1,057,591
30,286
–
110,004
–
–
–
6,244
–
35,623
–
4,111
–
95,938
–
80,810
–
–
22,273
363,016
22,273
30,286
2,270
–
110,004
11,422
–
–
–
–
6,244
629
–
35,623
18,284
–
4,111
2,777
–
95,938
25,675
(7,497)
80,810
23,316
(710)
22,273
–
–
385,289
84,373
(8,207)
–
–
–
–
–
–
(46)
At 1 January 2011:
Disposals
as held for sale
(46)
–
–
137
Pos Malaysia Berhad
Annual Report 2013
Building
improvements
and
RM’000
RM’000
Furniture
and fittings,
office and
computer
Motor
equipment
vehicles
RM’000
RM’000
Leasehold
land and
buildings
RM’000
Government
leasehold
land and
buildings
RM’000
Freehold
land
RM’000
32,510
–
121,426
–
–
–
6,873
–
53,907
–
6,888
–
114,116
–
32,510
1,809
–
121,426
9,137
–
–
–
–
6,873
501
(41)
53,907
24,395
(3,380)
6,888
2,892
–
34,319
–
130,563
–
–
–
7,333
–
74,922
–
34,319
130,563
–
7,333
Carrying amounts
At 1 January 2010
69,348
100,795
2,276
65,323
89,373
At 31 March 2013
63,514
80,236
Company
Capital
work-inprogress
RM’000
Total
RM’000
103,416
–
–
22,273
439,136
22,273
114,116
19,356
(719)
103,416
24,067
(273)
22,273
–
–
461,409
82,157
(4,413)
9,780
–
132,753
–
127,210
–
–
22,273
516,880
22,273
74,922
9,780
132,753
127,210
22,273
539,153
19,474
51,912
2,165
57,544
66,261
90,044
459,819
2,276
18,845
194,350
46,546
43,238
73,368
10,613
543,932
2,276
18,272
197,123
43,837
33,379
68,828
10,973
518,438
Plant
and
machinery
RM’000
(cont’d.)
At 31 March 2012/1 April 2012:
Disposals
At 31 March 2013:
138
www.pos.com.my
Depreciation for the year/period has been allocated as follows:
Group
Other income*
Company
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
85,275
377
86,845
417
81,780
377
83,956
417
85,652
87,262
82,157
84,373
* Depreciation has been netted off against other income as the assets were purchased in relation to government grant received by the Group and the Company.
11.1 Hire purchase arrangements
The carrying amount of motor vehicles purchased under hire purchase
arrangements for the Group and the Company amounted to RM5,000
(31.3.2012: RM20,000, 1.1.2011: RM29,601,000) and RMNil
(31.3.2012: RMNil, 1.1.2011: RM29,561,000) respectively.
11.2 Leasehold land and buildings
The title deeds for certain landed properties with net carrying value
amounting to RM2,180,000 (31.3.2012: RM3,933,000, 1.1.2011:
RM2,333,000) have yet to be issued in the name of the Company as at
31 March 2013 by the relevant authorities.
11.3 Government leasehold land and buildings
The cost of government leasehold land and buildings for the Group and
the Company of RM210,799,000 (31.3.2012: RM210,799,000, 1.1.2011:
RM210,799,000) are for a lease period of sixty (60) years commencing
from 1 January 1992, the vesting date as stated in Note 3 to the financial
statements.
The cost capitalised is in respect of the lease for the first thirty (30) years
as stipulated in the agreement signed between the Company and the
Government. The cost in respect of the remaining thirty (30) years lease
year has not been agreed. However, this cost will be agreed upon
finalisation of the agreement with the authorities, no later than 31
December 2020, and thereafter will be recognised accordingly.
The Company is also in the process of finalising lease agreements with the
authorities for additional Government leasehold land and buildings currently
used by the Company, which are at present carried at nil values in the
statements of financial position. These Government leasehold land and
buildings will be recognised in the statements of financial position upon
the valuations being finalised by the authorities.
139
Pos Malaysia Berhad
Annual Report 2013
12.Investment properties
Group
Group
2013
RM’000
2012
RM’000
At 1 March/1 January
Transfer from property, plant and equipment
Change in fair value recognised in profit or loss
27,958
–
1,592
15,071
15,418
(2,531)
At 31 March
29,550
27,958
Group
Included in the above are:
At fair value
Freehold land and buildings
Leasehold land and buildings with unexpired lease period of more than 50 years
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
11,522
18,028
11,816
16,142
3,311
11,760
29,550
27,958
15,071
Investment properties comprise a number of commercial properties that are leased to third parties. In the previous financial period, a few of the properties have been
transferred from property, plant and equipment (see Note 11) to investment properties, since the buildings were no longer used by the Group and leased to third parties.
The fair values of all investment properties are determined based on market values.
140
www.pos.com.my
12.Investment properties (cont’d.)
The following are recognised in profit or loss in respect of investment properties:
Group
Rental income
Direct operating expenses:
– income generating investment properties
2013
RM’000
2012
RM’000
1,008
1,064
313
286
13.Goodwill
Group
RM’000
Cost
At 1 January 2011/31 March 2012/1 April 2012/31 March 2013
4,630
Amortisation and impairment losses
–
Carrying amount
4,630
Goodwill relates to the Group’s licensed digital certificate authority business unit.
141
Pos Malaysia Berhad
Annual Report 2013
13.Goodwill (cont’d.)
Impairment testing for goodwill
The recoverable amount of the business unit is higher than its carrying amount and was based on its value in use. Value in use was determined by discounting the future
cash flows generated from the continuing operation of the business as a licensed digital certificate provider and was based on the following key assumptions:
(i) Cash flows were projected based on actual operating results and financial budget approved by management covering a 5-year business plan.
(ii) The anticipated growth rate of 15% per annum (31.3.2012: 15%, 1.1.2011: 5%).
(iii) The projected gross margin which reflects the average historical gross margin, adjusted for projected market and economic conditions and internal resource efficiency.
(iv) The unit will continue its operations indefinitely.
(v) A discount rate used of 12.1% (31.3.2012: 13.30%, 1.1.2011: 7.5%) which approximates the Group’s weighted average cost of capital, was applied.
Sensitivity to changes in assumptions
Management recognises that the changes in demand patterns and the possibility of new entrants could have a significant impact on growth rate assumptions. However,
unless there is a sudden change in the demand patterns, the Company should be able to sustain its growth rate.
14.Investments in subsidiaries
Company
31.3.2013
RM’000
Unquoted shares, at cost
Less: Accumulated impairment losses
142
31.3.2012
RM’000
1.1.2011
RM’000
69,050
(19,870)
65,050
(19,870)
65,050
(2,706)
49,180
45,180
62,344
www.pos.com.my
14.Investments in subsidiaries (cont’d.)
Details of the subsidiaries are as follows:
Effective ownership interest
Name of subsidiary
Country of incorporation
Datapos (M) Sdn. Bhd.
Malaysia
Digicert Sdn. Bhd.
Malaysia
Effivation Sdn. Bhd.
Pos Ar-Rahnu Sdn. Bhd.**
(formerly known as Bright Emerald Sdn. Bhd.)
Pos Takaful Agency Sdn. Bhd.
Poslaju (M) Sdn. Bhd.
Pos Malaysia & Services Holdings Berhad
PSH Capital Partners Sdn. Bhd.
PSH Venture Capital Sdn. Bhd.
PSH Properties Sdn. Bhd.
PSH Allied Berhad
PMB Properties Sdn. Bhd.
31.3.2013
%
31.3.2012
%
1.1.2011
%
100
100
100
100
100
100
Malaysia
Malaysia
Printing and insertion of documents
for mailing
Licensed digital
certification authority
Property investment
Ar-Rahnu (Islamic pawn broking)
100
80
100
-
100
-
Malaysia
Malaysia
Malaysia
Malaysia
Malaysia
Malaysia
Malaysia
Malaysia
Dormant
Dormant
Investment holding
Investment holding
Investment holding
Property investment
Dormant
Property investment
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
143
Pos Malaysia Berhad
Annual Report 2013
Details of the subsidiaries are as follows: (cont’d.)
Effective ownership interest
Name of subsidiary
31.3.2013
%
31.3.2012
%
1.1.2011
%
Held by PSH Capital Partners Sdn. Bhd.
Prestige Future Sdn. Bhd.
Malaysia
Dormant
100
100
100
Held by PSH Properties Sdn. Bhd.
Real Riviera Sdn. Bhd.
Malaysia
Property investment
100
100
100
Held by PSH Venture Capital Sdn. Bhd.
PSH Express Sdn. Bhd.
Malaysia
Air courier services and fulfilment
business
100
100
100
Dormant
100
100
100
Held by Pos Malaysia & Services Holdings Berhad
PSH Investment Holding (BVI) Ltd.*
British Virgin
Islands
* The investment in PSH Investment Holding (BVI) Ltd. has been consolidated based on management financial statements for the financial year ended 31 March 2013
as a statutory audit is not required in the British Virgin Islands.
** On 30 March 2012, Pos Ar-Rahnu Sdn. Bhd. was incorporated under the name of Bright Emerald Sdn. Bhd. The subsidiary subsequently changed its name to its existing
name on 30 April 2012. Pos Ar-Rahnu Sdn. Bhd. became a subsidiary of the Group upon the transfer of its paid up capital of 2 ordinary shares of RM1.00 each to
the Company on 25 June 2012.
144
Subsequently, the Company subscribed for an additional 3,999,998 ordinary shares of RM1.00 each for RM3,999,998 in the subsidiary.
www.pos.com.my
Impairment loss
The carrying amounts of the investments in subsidiaries were assessed for impairment during the year. The recoverable amounts of the investments in subsidiaries are
determined based on the value in use of the subsidiaries.
In the previous financial period, the recoverable amount of investment in a subsidiary based on the assessment of value in use, was lower than its carrying amount.
Accordingly, an allowance for impairment loss of RM17,164,000 (1.1.2011: RMNil) was recognised in profit or loss.
15.Investments in associates
Group and Company
31.3.2013
RM’000
Unquoted shares, at cost
Less: Accumulated impairment losses
7,650
(7,650)
–
31.3.2012
RM’000
7,650
(7,650)
–
1.1.2011
RM’000
7,650
(7,650)
–
The Group discontinued equity accounting of losses in associates as the losses exceeded the carrying amount of the investments. As at 31 March 2013, the share of profit
in those associates for the financial year and share of losses cumulatively not accounted for was a profit of RM105,000 (2012: loss of RM2,000) and RM38,356,000
(2012: RM38,461,000) respectively. The Group has not recognised these losses since the Group has no obligation in respect of these losses.
145
Pos Malaysia Berhad
Annual Report 2013
15.Investments in associates (cont’d.)
Summary financial information for associates, not adjusted for the percentage ownership held by the Group:
Group
31 March 2013
Elpos Print Sdn. Bhd.#
CEN Sdn. Bhd.#
Pospay Exchange Sdn. Bhd.#
31 March 2012
CEN Sdn. Bhd.#
1 January 2011
CEN Sdn. Bhd.#
Effective
ownership
interest %
Malaysia
Malaysia
Malaysia
40.0
42.5
50.0
Malaysia
Malaysia
Malaysia
Malaysia
Malaysia
Malaysia
40.0
42.5
50.0
40.0
42.5
50.0
Based on management accounts as at 31 March 2013/31 March 2012/1 January 2011.
#
146
Revenue
(100%)
RM’000
Profit/(Loss)
(100%)
RM’000
Total assets Total liabilities
(100%)
(100%)
RM’000
RM’000
9,660
254
–
328
(60)
–
5,943
12,438
709
8,493
66,378
5,441
9,914
268
19,090
80,312
6,772
12,503
709
9,470
66,383
5,441
15,805
2,383
–
1,465
(152)
(1,047)
18,188
266
19,984
81,294
–
–
–
–
–
–
–
–
8,161
12,169
717
12,567
65,848
3,309
21,047
81,724
www.pos.com.my
16.Other investments
Shares
Group
Total
RM’000
Unquoted
in Malaysia
RM’000
Debentures
Quoted in
Malaysia
RM’000
Unquoted
in Malaysia
RM’000
–
–
–
–
31 March 2013
Non-current
Available-for-sale financial assets
Less: Impairment loss
Held-to-maturity investments
Current
Financial assets at fair value through profit or loss: Held-for-trading
Representing items:
At amortised cost
At fair value
Market value of quoted investments
249,562
(249,562)
249,562
(249,562)
–
–
–
–
115,233
–
–
115,233
115,233
–
–
115,233
1,159
–
1,159
–
116,392
–
1,159
115,233
115,233
1,159
–
–
–
1,159
115,233
–
116,392
–
1,159
115,233
1,159
–
1,159
–
147
Pos Malaysia Berhad
Annual Report 2013
16.Other investments (cont’d.)
Shares
Group
Total
RM’000
Unquoted
in Malaysia
RM’000
Debentures
Quoted in
Malaysia
RM’000
Unquoted
in Malaysia
RM’000
–
–
–
–
31 March 2012
Non-current
Current
Representing items:
At amortised cost
At fair value
148
249,562
(249,562)
249,562
(249,562)
–
–
–
–
120,744
–
–
120,744
120,744
–
–
120,744
3,268
–
3,268
–
124,012
–
3,268
120,744
120,744
3,268
–
–
–
3,268
120,744
–
124,012
–
3,268
120,744
3,268
–
3,268
–
www.pos.com.my
Shares
Group
Total
RM’000
Unquoted
in Malaysia
RM’000
Debentures
Quoted in
Malaysia
RM’000
Unquoted
in Malaysia
RM’000
1 January 2011
Non-current
Current
Representing items:
At amortised cost
At fair value
249,562
(239,240)
–
–
249,562
(239,240)
–
–
10,322
–
10,322
–
86,146
–
–
86,146
96,468
–
10,322
86,146
4,356
99,950
–
–
4,356
–
–
99,950
104,306
–
4,356
99,950
200,774
–
14,678
186,096
186,096
14,678
–
–
–
14,678
186,096
–
200,774
–
14,678
186,096
14,678
–
14,678
–
149
Pos Malaysia Berhad
Annual Report 2013
Shares
Company
Total
RM’000
Unquoted
in Malaysia
RM’000
Debentures
Quoted in
Malaysia
RM’000
Unquoted
in Malaysia
RM’000
–
–
–
–
31 March 2013
Non-current
Current
Representing items:
At amortised cost
At fair value
150
357,343
(357,343)
357,343
(357,343)
–
–
–
–
115,586
–
–
115,586
115,586
–
–
115,586
194
–
194
–
115,780
–
194
115,586
115,586
194
–
–
–
194
115,586
–
115,780
–
194
115,586
194
–
194
–
www.pos.com.my
Shares
Company
Total
RM’000
Unquoted
in Malaysia
RM’000
Debentures
Quoted in
Malaysia
RM’000
Unquoted
in Malaysia
RM’000
–
–
–
–
31 March 2012
Non-current
Current
Representing items:
At amortised cost
At fair value
357,343
(357,343)
357,343
(357,343)
–
–
–
–
121,193
–
–
121,193
121,193
–
–
121,193
2,323
–
2,323
–
123,516
–
2,323
121,193
121,193
2,323
–
–
–
2,323
121,193
–
123,516
–
2,323
121,193
2,323
–
2,323
–
151
Pos Malaysia Berhad
Annual Report 2013
Shares
Company
Total
RM’000
Unquoted
in Malaysia
RM’000
Debentures
Quoted in
Malaysia
RM’000
Unquoted
in Malaysia
RM’000
1 January 2011
Non-current
Current
Representing items:
At amortised cost
At fair value
152
357,343
(347,021)
–
–
357,343
(347,021)
–
–
10,322
–
10,322
–
85,757
–
–
85,757
96,079
–
10,322
85,757
2,856
100,308
–
–
2,856
–
–
100,308
103,164
–
2,856
100,308
199,243
–
13,178
186,065
186,065
13,178
–
–
–
13,178
186,065
–
199,243
–
13,178
186,065
13,178
–
13,178
–
www.pos.com.my
In the previous financial period, the Group recognised impairment loss of RM10,322,000 for its unquoted equity instruments classified as available-for-sale financial assets
as there was a “significant” and “prolonged” decline in the fair value of the investments. These quoted shares were delisted from Bursa Malaysia Securities Berhad on 24
May 2011.
17.Inventories
Group
Postal uniforms and consumables
Pos 2020 merchandise
Insertion and mailing materials
Digital certificates, CD ROM and smart cards
Company
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
8,018
75
2,628
838
6,260
648
1,732
1,492
5,059
556
1,928
1,218
7,876
75
–
–
6,207
648
–
–
4,901
556
–
–
11,559
10,132
8,761
7,951
6,855
5,457
During the financial year, inventories recognised as expenses in profit or loss of the Group and of the Company amounted to RM37,884,000 (2012: RM42,848,000) and
RM27,711,000 (2012: RM32,205,000) respectively.
153
Pos Malaysia Berhad
Annual Report 2013
18.Trade and other receivables
Group
Note
Trade
Trade receivables
Accrued receivables
Non-trade
Other receivables
Amount due from subsidiaries
Deposits
Investment income receivables
Staff advances
a
b
Company
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
113,176
41,080
93,396
28,097
117,393
31,658
82,488
27,308
64,633
19,168
83,590
24,490
154,256
121,493
149,051
109,796
83,801
108,080
3,866
–
9,066
3,723
3,209
2,586
–
11,625
8,601
8,852
13,236
–
9,683
4,248
11,377
2,592
146,611
8,196
2,426
3,149
2,199
145,704
10,685
6,833
8,772
5,195
106,573
8,753
3,019
11,262
19,864
31,664
38,544
162,974
174,193
134,802
174,120
153,157
187,595
272,770
257,994
242,882
a. Trade receivables
154
Credit terms of trade receivables other than international mail receivables
range from thirty (30) days to sixty (60) days. The credit terms for
international mail receivables range from six (6) months to eighteen (18)
months in accordance with the Universal Postal Union guidelines.
Concentration of credit risk with respect to trade receivables is limited due
to the Group’s large number of customers whereby sufficient allowance has
been made for debts that are doubtful in collection. In addition, the Group
has adopted a credit evaluation policy for all trade receivables. Due to these
factors, management believes that no additional credit risk beyond amounts
provided for collection losses is inherent in the Group’s trade receivables.
Included in trade receivables of the Group and Company is RM5,178,000
(31.3.2012: RM2,028,000, 1.1.2011: RMNil) and RM4,232,000
(31.3.2012: RMNil, 1.1.2011: RMNil) respectively, due from related
companies of a significant investor that has an influence over the Group.
b. Amount due from subsidiaries
The amount due from subsidiaries is unsecured, interest free and repayable
on demand.
www.pos.com.my
19.Cash and cash equivalents
Group
Company
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
Deposits are placed with:
Licensed banks
Other financial institutions
865
143,455
989
160,000
1,345
155,707
–
143,551
–
160,000
–
151,607
Liquid investments
144,320
373,579
148,568
160,989
285,184
97,903
157,052
118,700
119,781
143,551
254,090
130,454
160,000
198,900
77,748
151,607
118,700
84,136
666,467
544,076
395,533
528,095
436,648
354,443
Included in deposits with licensed banks and other financial institutions of the Group and the Company are collections on behalf of agency payables, money order and postal
order payables amounting to RM187,304,000 (31.3.2012: RM155,159,000, 1.1.2011: RM142,795,000).
The Directors regard liquid investments as cash and cash equivalents when they are highly liquid investments that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
155
Pos Malaysia Berhad
Annual Report 2013
20.Asset classified as held for sale
In the previous financial period, the Group and the Company entered into a sale and purchase agreement to dispose of a property on 10 May 2011. The details of the
asset held for sale are as follows:
31.3.12
Leasehold land
RM’000
Group and Company
Property, plant and equipment:
Cost
1,801
(46)
Carrying amount
1,755
The sale was completed on 4 April 2012 and a gain on disposal of RM6,201,000 was recognised by the Group and Company during the financial year.
21.Share capital and reserves
Group and Company
Authorised:
Ordinary shares of RM0.50
Special Rights Redeemable Preference shares of RM1 each
Issued and fully paid:
Ordinary shares of RM0.50 each
1 January/31 March
Special Rights Redeemable
Preference Shares of RM1 each At 1 January/31March
31.3.2013
RM’000
31.3.2013
’000
31.3.2012
RM’000
31.3.2012
’000
1.1.2011
RM’000
1.1.2011
’000
1,000,000
2,000,000
1,000,000
2,000,000
1,000,000
2,000,000
*
*
*
*
*
*
268,513
537,026
268,513
537,026
268,513
537,026
*
*
*
*
*
*
268,513
537,026
268,513
537,026
268,513
537,026
* Share capital includes the Special Rights Redeemable Preference Share of RM1.00.
156
www.pos.com.my
21.Share capital and reserves (cont’d.)
(b) Share premium reserve
(a) The Special Rights Redeemable Preference Share confers the following
rights:
(i) The Special Rights Redeemable Preference Share issued to the
Government of Malaysia would enable the Government of Malaysia
through the Minister of Finance (Incorporated), or its successors or any
Minister, representative or any person acting on behalf, to ensure that
certain major decisions affecting the operation of the Company are
consistent with the Government’s policy. The Special Rights Redeemable
Preference shareholder is entitled to receive notices of meetings but
does not carry any right to vote at such meetings of the Company. He
also has the right to require the Company to redeem the Special Rights
Redeemable Preference Share at par at any time.
(ii) Certain matters, in particular, the alteration of the Articles of Association
of the Company relating to the rights of the Special Rights Redeemable
Preference shareholder, the dissolution of the Company, any substantial
acquisitions and disposal of assets, amalgamation, merger and takeover,
appointment of foreign directors, creation or issue of any shares which
when aggregated with all other existing issued shares, carry ten percent
of total voting rights, require prior consent of the Special Rights
Redeemable Preference shareholder.
(iii) In a distribution of capital or a winding-up of the Company, the Special
Rights Redeemable Preference shareholder is entitled to the repayment
of the capital paid-up on the Special Rights Redeemable Preference
Share in priority to any repayment of capital to any other member. The
Special Rights Redeemable Preference Share does not confer any right
to participate in the capital or profits of the Company.
This reserve comprises the premium paid on subscription of shares in the
Company over and above the par value of the shares.
(c) Revaluation reserve
The revaluation reserve relates to the revaluation of property, plant and
equipment immediately prior to its reclassification as investment property.
The movements in each category of the reserves are disclosed in the statements
of changes in equity.
22.Retained earnings
Under the single-tier tax system which came into effect from the year of
assessment 2008, companies are not required to have tax credits under Section
108 of the Income Tax Act, 1967 for dividend payment purposes. Dividends paid
under this system are tax exempt in the hands of shareholders.
Companies with Section 108 tax credit as at 31 December 2007 may continue
to pay franked dividends until the Section 108 tax credit are exhausted or 31
December 2013 whichever is earlier unless they opt to disregard the Section 108
credits to pay single-tier dividends under the special transitional provisions of the
Finance Act 2007.
As at 31 March 2013, the Company has sufficient Section 108 tax credits (which
expires on 31 December 2013) to pay approximately RM215,500,000 (31.3.2012:
RM317,000,000, 1.1.2011: RM388,000,000) of the retained earnings of the
Company as franked dividends. In addition, the Company has tax exempt income
of approximately RM72,000,000 (31.3.2012: RM72,000,000, 1.1.2011:
RM72,000,000) as at 31 March 2013, available to frank as tax exempt dividends.
157
Pos Malaysia Berhad
Annual Report 2013
23.Deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
Assets
Liabilities
31.3.2013
RM’000
31.3.2012
RM’000
Net
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
1.1.2011
RM’000
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
1,221
24,268
–
1,548
25,934
7
556
17,610
873
(62,154)
–
–
(45,293)
–
–
(30,904)
–
–
(60,933)
24,268
–
(43,745)
25,934
7
(30,348)
17,610
873
25,489
(25,489)
27,489
(27,489)
19,039
(18,622)
(62,154)
25,489
(45,293)
27,489
(30,904)
18,622
(36,665)
–
(17,804)
–
(11,865)
–
Group
Provisions
Unabsorbed tax losses
Tax assets/(liabilities)
Set-off
Net tax assets/(liabilities)
–
–
417
(36,665)
(17,804)
(12,282)
(36,665)
(17,804)
(11,865)
1,221
23,918
1,548
24,954
556
17,248
(60,251)
–
(43,901)
–
(29,176)
–
(59,030)
23,918
(42,353)
24,954
(28,620)
17,248
25,139
(25,139)
26,502
(26,502)
17,804
(17,804)
(60,251)
25,139
(43,901)
26,502
(29,176)
17,804
(35,112)
–
(17,399)
–
(11,372)
–
(35,112)
(17,399)
(11,372)
(35,112)
(17,399)
(11,372)
Company
Provisions
Tax assets/(liabilities)
Set-off
Net tax liabilities
158
–
–
–
Deferred tax assets and liabilities are offset above when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred
taxes relate to the same taxation authority.
www.pos.com.my
23.Deferred tax assets and liabilities (cont’d.)
Unrecognised deferred tax assets
Deferred tax assets have not been recognised for the following items:
Group
Unutilised tax losses
Unabsorbed capital allowances
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
50,735
2,753
49,557
1,897
50,072
1,870
53,488
51,454
51,942
The deductible temporary differences do not expire under the current tax legislation. Deferred tax assets were not recognised in respect of these items because it was not
probable that future taxable profit will be available against which the Group can utilise the benefits there from.
24.Borrowings
Group
Current
Revolving credit
Hire purchase liabilities
Non-current
Company
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
17,698
6
–
5
–
13,236
–
–
–
–
–
13,222
17,704
5
13,236
–
–
13,222
–
15
30,762
–
–
30,738
17,704
20
43,998
–
–
43,960
159
Pos Malaysia Berhad
Annual Report 2013
24.Borrowings (cont’d.)
Security
The revolving credit is secured by way of:
a) Debenture over fixed and floating assets of a subsidiary company; and
b) Proportionate guarantee by the Company of up to RM40,000,000, which is equivalent to 80% of the revolving credit facility.
Hire purchase liabilities are payable as follows:
31.3.2013
31.3.2012
1.1.2011
Gross
31.3.2013
RM’000
Interest
31.3.2012
RM’000
Principal
1.1.2011
RM’000
Gross
31.3.2013
RM’000
Interest
31.3.2012
RM’000
Principal
1.1.2011
RM’000
Gross
31.3.2013
RM’000
Interest
31.3.2012
RM’000
Principal
1.1.2011
RM’000
6
–
*
*
6
–
5
15
*
*
5
15
15,042
32,563
1,806
1,801
13,236
30,762
6
*
6
20
*
20
47,605
3,607
43,998
–
–
–
–
–
–
–
–
–
–
–
–
15,026
32,539
1,804
1,801
13,222
30,738
–
–
–
–
–
–
47,565
3,605
43,960
Group
Less than one year
Between one and five years
Company
Less than one year
Between one and five years
*
160
Interest amounts to less than RM1,000.
www.pos.com.my
25.Trade and other payables
Group
Note
Trade
Trade payables
Non-trade
Amount due to subsidiaries
Amount due to associates
Other payables and accruals:
Unpresented postal and money orders
Agency payables
Money order payables
Service payables
Other accruals
Deposits received
Company
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
a
25,093
42,690
38,876
23,306
40,050
35,954
b
b
–
1
–
239
–
1,069
45,812
1
37,050
239
52,329
1,069
111,292
167,433
19,871
25,468
241,261
15,172
86,249
134,138
21,021
31,392
233,968
14,924
85,492
130,467
12,328
27,084
161,994
14,539
111,292
167,433
19,871
21,989
230,143
12,932
86,249
134,138
21,021
28,076
228,412
12,460
85,492
130,467
12,328
24,208
151,455
13,075
580,498
521,931
432,973
609,473
547,645
470,423
605,591
564,621
471,849
632,779
587,695
506,377
c
a. Trade payables
Credit terms of international mail payables of the Group and of the Company range from six (6) months to eighteen (18) months (31.3.2012: 6 months to 18 months,
1.1.2011: 6 months to 18 months) in accordance with the Universal Postal Union guidelines.
Included in trade payables of the Group and of the Company is an amount of RM285,000 (31.03.2012: RM9,000, 1.1.2011: RMNil) due to related companies of a
significant investor that has an influence over the Group.
161
Pos Malaysia Berhad
Annual Report 2013
25.Trade and other payables (cont’d.)
b. Amounts due to subsidiaries and associates
26.Operating segments
The amounts due to subsidiaries and associates are unsecured, interest free
and repayable on demand.
c. Other accruals
Included in other accruals of the Group and the Company are deferred
government grant received and deferred income in relation to prepaid mail
amounting to RM1,744,000 (31.3.2012: RM4,776,000, 1.1.2011:
RM1,296,000) and RM30,850,000 (31.03.2012: RM25,819,000,
1.1.2011: RM21,463,000) respectively.
• Mail
• Retail –
Includes over-the-counter services for payment of bills and
certain financial products and services.
162
The grant related to income is recognised as other income in profit or loss
to match the expenditures spent, on a systematic basis. During the year, the
grant related to income amounting to RM2,654,000 (2012: RM4,103,000)
has been recognised as other income.
The grant related to assets is amortised over the useful life of the assets.
During the year, RM377,000 (2012: RM417,000) has been amortised as
other income in profit or loss.
–
Includes the provision of basic mail services for corporate and
individual customers and customised solutions such as Mailroom
Management and Direct Mail.
• Courier –Includes courier solutions by sea, air and land to both national
and international destinations.
In the previous financial period, the Group and Company were awarded a
RM8,000,000 (1.1.2011: RM2,000,000) government grant which was
received in the previous financial period. The grant received was related to
both income and assets and was conditional upon the execution of post
transformation plan on the expenditures spent and the acquisition of certain
motor vehicles.
The Group has three reportable segments, as described below, which are the
Group’s strategic business units. The strategic business units offer different
products and services and are managed separately because they require different
business processes and customer needs. For each of the strategic business units,
the Group’s Chief Executive Officer (the chief operating decision maker) and the
Board of Directors review internal management reports at least on a quarterly
basis. The following summary describes the operations in each of the Group’s
reportable segments: Other operations include the hybrid mail which provides data and document
processing services, logistics solutions by sea, air and land to both national and
international destinations, business of internet security products, solutions
and services and rental income from investment properties held by the Group.
None of these segments meets any of the quantitative thresholds for
determining reportable segments for the year/period ended 31 March 2013 and
31 March 2012.
www.pos.com.my
26.Operating segments (cont’d.)
There are varying levels of integration between the Mail reportable segment and
the Courier reportable segments. This integration includes shared distribution
services.
Performance is measured based on segment results. Segment results is used to
measure performance as management believes that such information is the most
relevant in evaluating the results of certain segments relative to other entities that
operate within these industries.
Geographical segments
The Group operates in Malaysia. Accordingly, information by geographical segment
is not presented.
Segment capital expenditure
Segment capital expenditure is the total cost incurred during the financial year
to acquire property, plant and equipment.
Major customers
Inter-segment pricing is determined on a negotiated basis.
Segment assets
The Group has a diversified range of customers varying from retail customers and
wholesale customers. There is no significant concentration of revenue from any
customers.
The total of segment assets is measured based on all assets (including goodwill)
of a segment, as included in the internal management reports that are reviewed
by the Group’s Chief Executive Officer. Segment total assets are used to measure
the return of assets of each segment.
Segment liabilities
The total segment liabilities is measured based on all liabilities of a segment, as
included in the internal management reports that are reviewed by the Group’s
Chief Executive Officer. Segment total liabilities are used to measure the gearing
of each segment.
163
Pos Malaysia Berhad
Annual Report 2013
Mail
RM’000
Courier
RM’000
Revenue
Total external revenue
Intersegment revenue
724,486
2,875
322,665
2,174
175,290
50,693
47,070
–
–
(55,742)
1,269,511
–
Total revenue for reportable segments
727,361
324,839
225,983
47,070
(55,742)
1,269,511
Reportable segment results
Other unallocated results
137,911
55,191
(42,408)
10,113
Year Ended 31 March 2013
Retail Other operations
RM’000
RM’000
Elimination
RM’000
–
395,837
97,860
148,251
115,364
–
22,692
1,096
184,654
1,787
–
164
210,229
457,342
667,571
Total liabilities
Other information
Capital expenditure
– Property, plant and equipment
Finance income
Finance expense
– Held for trading financial instrument
Tax expense
757,312
857,951
1,615,263
Total assets
Reportable segment liabilities
Other unallocated liabilities
160,807
31,062
191,869
Profit before taxation
Reportable segments assets
Other unallocated assets
Group
RM’000
23,064
(44,434)
–
–
13,661
(13,387)
–
(1)
24,796
(23,578)
–
–
6,662
(3,876)
–
(19)
–
–
–
–
68,183
(85,275)
17,204
(20)
1,592
(104)
(40,564)
www.pos.com.my
Mail
RM’000
Courier
RM’000
Revenue
Total external revenue
Intersegment revenue
921,527
3,346
308,687
1,425
202,597
64,279
48,849
–
–
(69,050)
1,481,660
–
Total revenue for reportable segments
924,873
310,112
266,876
48,849
(69,050)
1,481,660
Reportable segment results
Other unallocated results
183,408
34,062
Period from 1 January 2011 to 31 March 2012
Retail Other operations
RM’000
RM’000
(46,126)
6,416
Elimination
RM’000
–
Profit before taxation
Reportable segments assets
Other unallocated assets
347,046
122,209
155,170
118,618
–
743,043
755,033
1,498,076
34,306
1,011
133,783
7,743
–
Total liabilities
Other information
Capital expenditure
– Property, plant and equipment
Finance income
Finance expense
Impairment loss on financial assets designated as available-for-sale
Tax expense
177,760
22,442
200,202
Total assets
Reportable segment liabilities
Other unallocated liabilities
Group
RM’000
176,843
423,140
599,983
130,493
(46,210)
–
(1,381)
–
–
–
–
14,366
(16,023)
–
(465)
–
–
–
–
24,998
(20,253)
–
(190)
–
–
–
–
3,866
(4,359)
–
(1)
–
–
–
–
–
–
–
–
–
–
173,723
(86,845)
19,153
(2,037)
(10,322)
(2,531)
–
–
283
(61,361)
165
Pos Malaysia Berhad
Annual Report 2013
27.Financial instruments
27.1 Categories of financial instruments
The table below provides an analysis of financial instruments categorised as follows:
(a)
(b)
(c)
(d)
(e)
Loans and receivables (L&R);
Fair value through profit or loss (FVTPL): Held for trading (HFT)
Available-for-sale financial assets (AFS);
Held-to-maturity investments (HTM); and
Other financial liabilities measured at amortised cost (OL).
31 March 2013
Carrying
amount
RM’000
L&R/
(OL)
RM’000
FVTPL
-HFT
RM’000
AFS
RM’000
HTM
RM’000
Financial assets
Group
Other investments
Company
Other investments
166
116,392
174,120
666,467
–
174,120
666,467
1,159
–
–
–
–
–
115,233
–
–
956,979
840,587
1,159
–
115,233
115,780
272,770
528,095
–
272,770
528,095
194
–
–
–
–
–
115,586
–
–
916,645
800,865
194
–
115,586
www.pos.com.my
27.Financial instruments (cont’d.)
27.1 Categories of financial instruments (cont’d.)
31 March 2013
L&R/
(OL)
RM’000
FVTPL
-HFT
RM’000
AFS
RM’000
HTM
RM’000
(6)
(17,698)
(605,591)
(6)
(17,698)
(605,591)
–
–
–
–
–
–
–
–
–
(623,295)
(623,295)
–
–
–
(632,779)
(632,779)
–
–
–
Carrying
amount
RM’000
Group
Revolving credit
Company
167
Pos Malaysia Berhad
Annual Report 2013
31 March 2012
Carrying
amount
RM’000
L&R/
(OL)
RM’000
FVTPL
-HFT
RM’000
AFS
RM’000
HTM
RM’000
Financial assets
Group
Other investments
Company
Other investments
124,012
153,157
544,076
–
153,157
544,076
3,268
–
–
–
–
–
120,744
–
–
821,245
697,233
3,268
–
120,744
123,516
257,994
436,648
–
257,994
436,648
2,323
–
–
–
–
–
121,193
–
–
818,158
694,642
2,323
–
121,193
(20)
(564,621)
(20)
(564,621)
–
–
–
–
–
–
(564,641)
(564,641)
–
–
–
(587,695)
(587,695)
–
–
–
Group
Company
168
www.pos.com.my
1 January 2011
Carrying
amount
RM’000
L&R/
(OL)
RM’000
FVTPL
-HFT
RM’000
AFS
RM’000
HTM
RM’000
Financial assets
Group
Other investments
Company
Other investments
200,774
187,595
395,533
–
187,595
395,533
4,356
–
–
10,322
–
–
186,096
–
–
783,902
583,128
4,356
10,322
186,096
199,243
242,882
354,443
–
242,882
354,443
2,856
–
–
10,322
–
–
186,065
–
–
796,568
597,325
2,856
10,322
186,065
(43,998)
(471,849)
(43,998)
(471,849)
–
–
–
–
–
–
(515,847)
(515,847)
–
–
–
(43,960)
(506,377)
(43,960)
(506,377)
–
–
–
–
–
–
(550,337)
(550,337)
–
–
–
Group
Company
169
Pos Malaysia Berhad
Annual Report 2013
27.2 Net gains and losses arising from financial instruments
Group
Year ended
31.3.2013
RM’000
Net gains/(losses) on:
Loans and receivables
Financial liabilities measured at amortised cost
(34)
–
4,490
10,219
(20)
14,655
27.3 Financial risk management
The Group’s overall financial risk management objective is to ensure the
continuous growth in profitability and enhance shareholders’ value in a
competitive and changing environment. At the same time, the Group is
focused in performing its Universal Service Obligation as a provider of
postal service throughout the country and to international destinations in
an efficient and effective manner.
The Group has exposure to the following risks from its use of financial
instruments:
• Credit risk
• Liquidity risk
• Market risk
170
Company
1.1.2011 to
31.3.2012
RM’000
341
(10,322)
8,020
(3,153)
(2,038)
(7,152)
Year ended
31.3.2013
RM’000
(52)
–
3,990
10,276
–
14,214
1.1.2011 to
31.3.2012
RM’000
362
(10,322)
7,500
(4,059)
(2,037)
(8,556)
27.4 Credit risk
Credit risk is the risk of a financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations. The Group’s exposure to credit risk arises principally from its
receivables from customers and investment securities.
The Company also has exposure to credit risk from loans and advances to
subsidiaries.
www.pos.com.my
27.4 Credit risk (cont’d.)
Receivables
Risk management objectives, policies and processes for managing the risk
Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The Group seeks to control credit risk by setting
counterparty limits and ensuring that services are made to customers with an appropriate credit history. Any receivables having significant more than 120 days, which
are deemed to have higher credit risk, are monitored individually.
Exposure to credit risk, credit quality and collateral
As at the end of the reporting year, the maximum exposure to credit risk arising from receivables is represented by the carrying amounts in the statements of financial
position.
Management has taken reasonable steps to ensure that receivables that are neither past due nor impaired are measured at their realisable values. A significant portion
of these receivables are regular customers that have been transacting with the Group. The Group uses ageing analysis to monitor the credit quality of the receivables.
Any receivables having significant balances past due more than 120 days, which are deemed to have higher credit risk, are monitored individually.
Concentration of credit risk with respect to receivables is limited due to the Group’s large number of customers.
Impairment losses
The ageing of trade receivables as at the end of the reporting year was:
Group
Gross
RM’000
Impairment
RM’000
Net
RM’000
31 March 2013
Not past due
Past due 1 – 30 days
Past due more than 120 days
57,732
14,170
26,606
39,577
–
–
(93)
(24,816)
57,732
14,170
26,513
14,761
138,085
(24,909)
113,176
171
Pos Malaysia Berhad
Annual Report 2013
Receivables (cont’d.)
Impairment losses (cont’d.)
The ageing of trade receivables as at the end of the reporting year was: (cont’d.)
Group
Gross
RM’000
31 March 2012
Not past due
49,962
13,431
13,589
38,827
–
(557)
(1,266)
(20,590)
49,962
12,874
12,323
18,237
115,809
(22,413)
93,396
63,967
15,553
7,454
39,282
–
–
–
(8,863)
63,967
15,553
7,454
30,419
126,256
(8,863)
117,393
1 January 2011
Not past due
172
Impairment
RM’000
Net
RM’000
www.pos.com.my
The ageing of trade receivables as at the end of the reporting year was: (cont’d.)
Company
Gross
RM’000
31 March 2013
Not past due
44,706
11,116
16,751
29,549
–
–
(93)
(19,541)
44,706
11,116
16,658
10,008
102,122
(19,634)
82,488
44,806
6,724
9,081
23,945
–
(557)
(1,266)
(18,100)
44,806
6,167
7,815
5,845
84,556
(19,923)
64,633
41,033
13,211
5,351
31,942
–
–
–
(7,947)
41,033
13,211
5,351
23,995
91,537
(7,947)
83,590
31 March 2012
Not past due
1 January 2011
Not past due
Impairment
RM’000
Net
RM’000
173
Pos Malaysia Berhad
Annual Report 2013
The movements in the allowance for impairment losses of trade receivables during the financial year were:
Group
Company
2013
RM’000
2012
RM’000
2013
RM’000
2012
RM’000
Impairment loss recognised
Impairment loss reversed
22,413
3,424
(928)
8,863
13,594
(44)
19,923
570
(859)
7,947
11,976
–
At 31 March
24,909
22,413
19,634
19,923
The allowance account in respect of receivables is used to record impairment losses. Unless the Group is satisfied that recovery of the amount is possible, the amount
considered irrecoverable is written off against the receivable directly.
174
www.pos.com.my
Financial guarantees
The Company provides unsecured financial guarantees to banks in respect
of banking facilities granted to a subsidiary. The Company monitors on an
on-going basis the results of the subsidiary and repayments made by the
subsidiary.
The maximum exposure to credit risk amounts to RM17,698,000
(31.3.2012: RMNil, 1.1.2011: RMNil) representing the outstanding
banking facilities of the subsidiary as at the end of the reporting period.
As at the end of the reporting period, there was no indication that the
subsidiary would default on repayment.
The financial guarantees have not been recognised since the fair value on
initial recognition was not material.
Investments and other financial assets
Investments are allowed only in liquid securities and only with counterparties
that have a credit rating equal to or better than the Group.
As at the end of the reporting period, the Group has only invested
principally in domestic securities. The maximum exposure to credit risk is
represented by the carrying amounts in the statements of financial
position.
In view of the sound credit rating of counterparties, management does not
expect any counterparty to fail to meet its obligations.
The investments and other financial assets are unsecured.
Impairment losses
In the previous financial period, an impairment loss of RM10,322,000 in
respect of a quoted equity instrument classified as available-for-sale
financial assets was recognised as there was a significant and prolonged
decline in fair value of the investment. These quoted shares were delisted
from Bursa Malaysia Securities Berhad on 24 May 2011.
175
Pos Malaysia Berhad
Annual Report 2013
Investments and other financial assets (cont’d.)
The movements in the allowance for impairment loss during the financial year were:
Group
Company
2013
RM’000
2012
RM’000
2013
RM’000
2012
RM’000
Impairment loss recognised
249,562
–
239,240
10,322
357,343
–
347,021
10,322
At 31 March
249,562
249,562
357,343
357,343
Inter company balances
The Company provides unsecured advances to subsidiaries. The Company
monitors the results of the subsidiaries regularly.
Loans and advances are only provided to subsidiaries which are wholly
owned by the Company.
The amounts due from subsidiaries are repayable on demand.
As at the end of the reporting year, the maximum exposure to credit risk
is represented by their carrying amounts in the statements of financial
position.
176
Impairment losses
As at the end of the reporting year, the inter company balance that is
assessed to be irrecoverable amounting to RM45,776,000 (31.3.12:
RM45,776,000, 1.1.2011: RM45,776,000) had been impaired. The
Company does not specifically monitor the aging of current advances to
the subsidiaries.
www.pos.com.my
27.5 Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s exposure to liquidity risk arises principally
from its various payables.
The Group maintains a level of cash and cash equivalents and bank facilities deemed adequate by the management to ensure, as far as possible, that it will have
sufficient liquidity to meet its liabilities when they fall due.
Maturity analysis
The table below summarises the maturity profile of the Group’s and the Company’s financial liabilities as at the end of the reporting period based on undiscounted
contractual payments:
Carrying
amount
RM’000
Contractual
interest rate
Contractual
cash flows
RM’000
Under 1 year
RM’000
1 – 5 years
RM’000
6
17,698
605,591
2.3%
4.15%
–
6
17,698
605,591
6
17,698
605,591
–
–
–
623,295
623,295
623,295
–
632,779
632,779
632,779
–
31 March 2013
Group
Revolving credit
Company
177
Pos Malaysia Berhad
Annual Report 2013
27.5 Liquidity risk (cont’d.)
Maturity analysis (cont’d.)
The table below summarises the maturity profile of the Group’s and the Company’s financial liabilities as at the end of the reporting period based on undiscounted
contractual payments: (cont’d.)
Carrying
amount
RM’000
Contractual
interest rate
Contractual
cash flows
RM’000
Under 1 year
RM’000
1 – 5 years
RM’000
20
564,621
2.3%
–
20
564,621
5
564,621
15
–
564,641
564,641
564,626
15
587,695
587,695
587,695
–
47,605
471,849
15,042
471,849
32,563
–
519,454
486,891
32,563
47,565
506,377
15,026
506,377
32,539
–
553,942
521,403
32,539
31 March 2012
Group
Company
1 January 2011
Group
43,998
471,849
2.3% – 3.6%
–
515,847
Company
43,960
506,377
550,337
178
2.3% – 3.6%
–
www.pos.com.my
27.6 Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and other prices that will affect the Group’s financial position or
cash flows.
27.6.1 Currency risk
The Group is exposed to foreign currency risk on sales and purchases that are denominated in a currency other than the respective functional currencies of
Group entities, as a result of providing foreign mail exchange service and remittance service. The currency giving rise to this risk is primarily US Dollar
(USD).
The Group does not use any forward contracts to hedge against its exposure to foreign currency. The Group ensures that the net exposure is kept to an
acceptable level by monitoring the fluctuation of the foreign currency.
Exposure to foreign currency risk
The Group’s exposure to foreign currency (a currency which is other than the currency of the Group entities) risk, based on carrying amounts as at the end
of the reporting period was:
Denominated in USD
Group
Exposure in the statements of financial position
31.3.2013
RM’000
5,159
(5,237)
(78)
31.3.2012
RM’000
9,926
(7,985)
1,941
1.1.2011
RM’000
9,924
(16,296)
(6,372)
179
Pos Malaysia Berhad
Annual Report 2013
27.6 Market risk (cont’d.)
27.6.1 Currency risk (cont’d.)
Currency risk sensitivity analysis
Foreign currency risk arises from Group entities which have a USD functional currency.
A 10% (2012: 10%) strengthening of the RM against the USD at the end of the reporting year would have increased (decreased) equity and post-tax profit
or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remained constant and ignores any impact
of forecasted sales and purchases.
Equity
Group
USD
2013
RM’000
6
Profit or loss
2012
RM’000
(146)
2013
RM’000
6
2012
RM’000
(146)
A 10% (2012: 10%) weakening of RM against the USD at the end of the reporting year would have had equal but opposite effect on the above currencies
to the amounts shown above, on the basis that all other variables remained constant.
27.6.2 Interest rate risk
The Group’s primary interest rate risks relates to debt securities, deposits placed with licensed banks, borrowings and investments in equity securities.
The Group’s investments in fixed rate debt securities, deposits placed with licensed banks, fixed rate borrowings, investments in equity securities and short
term receivables and payables are not significantly exposed to interest rate risk.
The Group’s variable rate borrowings are exposed to a risk of change in cash flows due to changes in interest rates.
180
www.pos.com.my
27.6.2 Interest rate risk (cont’d.)
The Group adopts a policy of investing and borrowing mainly in fixed rate instruments to avoid the risk of fluctuation in interest rates except for short term
borrowings. As for investments in fixed rate debt securities, the Group will only invest in debt securities that have a rating of A and above.
The Group’s variable rate short term borrowings are exposed to a risk of change in interest rate.
Exposure to interest rate risk
The interest rate profile of the Group’s and the Company’s significant interest-bearing financial instruments, based on carrying amounts as at the end of the
reporting period was:
Group
Fixed rate instruments
Financial assets
Deposits placed with licensed banks
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
115,233
144,415
120,744
165,335
186,096
157,052
115,586
143,551
121,193
160,000
186,065
151,607
–
–
(6)
259,642
Floating rate instruments
Revolving credit
Company
(17,698)
(20)
(43,998)
(43,960)
286,059
299,150
259,137
281,193
293,712
–
–
–
–
–
181
Pos Malaysia Berhad
Annual Report 2013
27.6.2 Interest rate risk (cont’d.)
Interest rate risk sensitivity analysis
(a) Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefore, a change in interest rates
at the end of the reporting period would not affect profit or loss.
(b) Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points (bp) in interest rates at the end of the reporting period would have increased (decreased) equity and post-tax profit or
loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remained constant.
Equity
Group
Floating rate instruments
27.6.3 Other price risk
182
Profit or loss
2013
RM’000
2012
RM’000
2013
RM’000
2012
RM’000
133
–
133
–
Equity price risk arises from the Group’s investments in equity
securities.
Equity price risk sensitivity analysis
This analysis assumes that all other variables remained constant
and the Group’s equity investments moved in correlation with
FTSE Bursa Malaysia KLCI (FBMKLCI).
Risk management objectives, policies and processes for managing
the risk
Management of the Group monitors the equity investments on a
portfolio basis. Material investments within the portfolio are
managed on an individual basis and all buy and sell decisions are
approved by the Directors.
A 10% (2012: 10%) strengthening in FBMKLCI at the end of the
reporting period would have increased post-tax profit by RM87,000
for investment classified as fair value through profit or loss
(2012: RM245,000). A 10% (2012: 10%) weakening in FBMKLCI
would have had equal but opposite effect on equity and profit or
loss respectively.
www.pos.com.my
27.7 Fair value of financial instruments
The carrying amounts of cash and cash equivalents, short term receivables and payables approximate fair values due to the relatively short term nature of these
financial instruments.
The fair values of other financial assets and liabilities, together with the carrying amounts shown in the statements of financial position, are as follows:
31.3.2013
31.3.2012
1.1.2011
Carrying
amount
RM’000
Fair
value
RM’000
Carrying
amount
RM’000
Fair
value
RM’000
Carrying
amount
RM’000
Fair
value
RM’000
115,233
6
115,648
6
120,744
20
121,390
20
186,096
43,998
186,696
47,605
115,586
–
115,568
–
121,193
–
121,390
–
186,065
43,960
186,696
47,565
Group
Unquoted held-to-maturity investments
Company
The following summarises the methods used in determining the fair value of financial instruments reflected in the above table.
Investments in equity and debt securities
The fair values of financial assets that are quoted in an active market are determined by reference to their quoted closing bid price at the end of the reporting
period.
Non-derivative financial liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market
rate of interest at the end of the reporting period. For hire purchase liabilities, the market rate of interest is determined by reference to similar hire purchase
arrangements.
183
Pos Malaysia Berhad
Annual Report 2013
27.7 Fair value of financial instruments (cont’d.)
Interest rates used to determine fair value
The interest rates used to discount estimated cash flows, when applicable, are as follows:
31.3.2013
31.3.2012
1.1.2011
3.4% – 3.9%
–
3.4% – 3.9%
–
3.5% – 3.9%
2.3% – 3.6%
27.8 Fair value hierarchy
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:
• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level 2:
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e.
derived from prices).
• Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
31 March 2013
Level 1
RM’000
Level 2
RM’000
Level 3
RM’000
Total
RM’000
–
1,159
–
–
115,233
–
115,233
1,159
1,159
–
115,233
116,392
–
194
–
–
115,586
–
115,586
194
194
–
115,586
115,780
Financial assets
Group
Investment in unquoted held-to-maturity
Investment in quoted shares
Company
184
www.pos.com.my
27.8 Fair value hierarchy (cont’d.)
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows: (cont’d.)
31 March 2012
Level 1
RM’000
Level 2
RM’000
Level 3
RM’000
Total
RM’000
–
3,268
–
–
120,744
–
120,744
3,268
3,268
–
120,744
124,012
–
2,323
–
–
121,193
–
121,193
2,323
2,323
–
121,193
123,516
Financial assets
Group
Company
185
Pos Malaysia Berhad
Annual Report 2013
28.Capital management
The Group’s objectives when managing capital is to maintain a strong capital base and safeguard the Group’s ability to continue as a going concern, so as to maintain
investor, creditor and market confidence and to sustain future development of the business. The Directors monitor and are determined to maintain an optimal debt-to-equity
ratio that complies with regulatory requirements.
Group
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
Total borrowings (Note 24)
Less: Cash and cash equivalents
17,704
(479,163)
20
(388,917)
43,998
(252,738)
Net cash
(461,459)
(388,897)
(208,740)
947,692
898,093
828,593
Total equity
There were no changes in the Group’s approach to capital management during the financial year.
Under the requirement of Bursa Malaysia Practice Note No. 17/2005, the Company is required to maintain a consolidated shareholders’ equity equal to or not less than
the 25% of the issued and paid-up capital (excluding treasury shares) and such shareholders’ equity is not less than RM40 million. The Company has complied with this
requirement.
29.Capital commitments
Group
Authorised but not contracted for
Contracted but not provided for
186
Company
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
31.3.2013
RM’000
31.3.2012
RM’000
1.1.2011
RM’000
159,210
15,252
281,339
151,772
8,685
273,378
59,749
42,309
55,879
59,530
42,309
55,807
www.pos.com.my
30.Significant related party transactions
For the purposes of these financial statements, parties are considered to be related to the Group if the Group or the Company has the ability, directly or indirectly, to control
the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group or the Company and the party are
subject to common control or common significant influence. Related parties may be individuals or other entities.
Related parties also include key management personnel defined as those persons having authority and responsibility for planning, directing and controlling the activities of
the Group either directly or indirectly. The key management personnel include all the Directors of the Group, and certain members of senior management of the Group.
The significant related party relationships of the Group and the Company, other than key management personnel compensation (see Note 7), are as follows:
Group
Year ended
31.3.2013
RM’000
A.
B.
C.
Related companies of a significant investor that has an influence over the Group
Sales of services
Commissions on services
Rental income
Purchase of services
Rental expense
Commission expense
Purchase of capital expenditures
Subsidiaries
Sales of services
Purchase of services
Rental expense
Associates
Purchase of goods
8,882
3,287
1,017
(17,050)
(95)
(10,033)
(3,528)
–
–
–
(6,577)
Company
1.1.2011 to
31.3.2012
RM’000
6,263
784
314
(1,008)
(14)
–
–
–
–
–
(10,692)
Year ended
31.3.2013
RM’000
1.1.2011 to
31.3.2012
RM’000
3,426
3,287
1,017
(17,050)
(95)
(10,033)
(3,528)
1,955
784
314
(1,008)
(14)
–
–
47,631
(8,245)
(6,050)
61,196
(9,426)
(6,173)
(6,577)
(10,692)
187
Pos Malaysia Berhad
Annual Report 2013
30.Significant related party transactions (cont’d.)
The above transactions have been entered into the natural course of business and have been established under negotiated terms.
There were no allowance for impairment losses being made in respect of these balances outstanding for the year/period ended 31 March 2013 and 31 March 2012
respectively. The outstanding net amounts due from/to subsidiaries, related companies of a significant investor that has an influence over the Group and associates as at 31
March 2013 and 31 March 2012 are disclosed in Note 18 and Note 25 respectively.
31.Comparative figures
Certain comparative figures have been reclassified to conform with the current year’s presentation requirements:
Group
Statements of cash flows
Cash and cash equivalents at 31 March 2012
Company
As restated
RM’000
As previously
stated
RM’000
As restated
RM’000
As previously
stated
RM’000
388,917
409,937
281,489
302,509
Cash and cash equivalents included in the statements of cash flows comprise of the following statements of financial position amounts.
Liquid investments
Deposits placed with licensed and other financial institutions
Less:
Collections on behalf of agency creditors and money order and postal order creditors
188
97,903
285,184
160,989
97,903
280,838
165,335
77,748
198,900
160,000
77,748
198,900
160,000
544,076
544,076
436,648
436,648
(155,159)
(134,139)
(155,159)
(134,139)
388,917
409,937
281,489
302,509
www.pos.com.my
32. Explanation of transition to MFRSs
As stated in Note 1(a), these are the first financial statements of the Group and of the Company prepared in accordance with MFRSs.
The accounting policies set out in Note 2 have been applied in preparing the financial statements of the Group and of the Company for the financial year ended 31 March
2013, the comparative information presented in these financial statements for the financial year ended 31 March 2012 and in the preparation of the opening MFRS
statement of financial position at 1 January 2011 (the Group’s date of transition to MFRSs).
The transition to MFRSs does not have financial impact to the separate financial statements of the Group.
33.Supplementary information on the breakdown of realised and unrealised profits
The breakdown of the retained earnings of the Group and of the Company as at 31 March 2013, into realised and unrealised profits, pursuant to Paragraph 2.06 and 2.23
of Bursa Malaysia Main Market Listing Requirements are as follows:
Group
Total retained earnings of the Company and its subsidiaries:
– Realised
– Unrealised
Total share of retained earnings of associates:
– Realised
Company
2013
RM’000
2012
RM’000
2013
RM’000
2012
RM’000
625,358
72,377
554,825
83,683
588,529
(35,112)
545,225
(17,040)
697,735
638,508
553,417
528,185
(7,650)
(7,650)
–
–
Add: Consolidation adjustments
690,085
(13,014)
630,858
(2,807)
553,417
–
528,185
–
Total retained earnings
677,071
628,051
553,417
528,185
The determination of realised and unrealised profits is based on the Guidance of Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the
Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued by Malaysian Institute of Accountants on 20 December 2010.
189
Pos Malaysia Berhad
Annual Report 2013
Statement by Directors
pursuant to Section 169(15) of the Companies Act, 1965
In the opinion of the Directors, the financial statements set out on pages 98 to 189 are drawn up in accordance with Malaysian Financial Reporting Standards, International
Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of
the Company as of 31 March 2013 and of their financial performance and cash flows for the year then ended.
In the opinion of Directors, the information set out in Note 33 on page 189 to the financial statements had been compiled in accordance with the Guidance on Special Matter
No. 1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosures Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued by
the Malaysian Institute of Accountants, and presented based on the format prescribed by Bursa Malaysia Securities Berhad.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
Tan Sri Dato’ Sri Haji Mohd Khamil bin Jamil Kuala Lumpur,
Date: 19 June 2013
190
Abdul Hamid bin Sh. Mohamed
www.pos.com.my
Statutory Declaration
pursuant to Section 169(16) of the Companies Act, 1965
I, Ahmad Faisal bin Murad, the officer primarily responsible for the financial management of Pos Malaysia Berhad, do solemnly and sincerely declare that the financial statements
set out on pages 98 to 189 are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and by
virtue of the provisions of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the above named in Kuala Lumpur on 19 June 2013.
Ahmad Faisal bin Murad
Before me:
191
Pos Malaysia Berhad
Annual Report 2013
Independent auditors’ report
to the members of Pos Malaysia Berhad
(Company No. 229990-M) (Incorporated in Malaysia)
Report on the Financial Statements
We have audited the financial statements of Pos Malaysia Berhad, which comprise the
statements of financial position as at 31 March 2013 of the Group and of the
Company, and the statements of profit or loss and other comprehensive income,
changes in equity and cash flows of the Group and of the Company for the year then
ended, and a summary of significant accounting policies and other explanatory
information, as set out on pages 98 to 189.
Directors’ Responsibility for the Financial Statements
The Directors of the Company are responsible for the preparation of financial
statements so as to give a true and fair view in accordance with Malaysian Financial
Reporting Standards, International Financial Reporting Standards and the requirements
of the Companies Act, 1965 in Malaysia. The Directors are also responsible for such
internal control as the Directors determine is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors’ Responsibility
Our responsibility is to express an
audit. We conducted our audit in
Malaysia. Those standards require
and perform the audit to obtain
statements are free from material
192
opinion on these financial statements based on our
accordance with approved standards on auditing in
that we comply with ethical requirements and plan
reasonable assurance about whether the financial
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts
and disclosures in the financial statements. The procedures selected depend on our
judgement, including the assessment of risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, we
consider internal control relevant to the entity’s preparation of financial statements that
give a true and fair view in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting estimates made by
the Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial
position of the Group and of the Company as of 31 March 2013 and of their financial
performance and cash flows for the year then ended in accordance with Malaysian
Financial Reporting Standards, International Financial Reporting Standards and the
requirements of the Companies Act, 1965 in Malaysia.
www.pos.com.my
Report on Other Legal and Regulatory Requirements
Other Reporting Responsibilities
In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also
report the following:
Our audit was made for the purpose of forming an opinion on the financial statements
taken as a whole. The information set out in Note 33 on page 189 to the financial
statements has been compiled by the Company as required by the Bursa Malaysia
Securities Berhad Listing Requirements and is not required by the Malaysian Financial
Reporting Standards or International Financial Reporting Standards. We have extended
our audit procedures to report on the process of compilation of such information. In
our opinion, the information has been properly compiled, in all material respects, in
accordance with the Guidance on Special Matter No.1, Determination of Realised and
Unrealised Profits or Losses in the Context of Disclosures Pursuant to Bursa Malaysia
Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants
and presented based on the format prescribed by Bursa Malaysia Securities Berhad.
(a) In our opinion, the accounting and other records and the registers required by
the Act to be kept by the Company and its subsidiaries of which we have acted
as auditors have been properly kept in accordance with the provisions of the Act.
(b) We have considered the accounts of a subsidiary of which we have not acted as
auditors, which is indicated in Note 14 to the financial statements.
(c) We are satisfied that the accounts of the subsidiaries that have been consolidated
with the Company’s financial statements are in form and content appropriate and
proper for the purposes of the preparation of the financial statements of the
Group and we have received satisfactory information and explanations required by
us for those purposes.
(d) Our audit reports on the accounts of the subsidiaries did not contain any
qualification or any adverse comment made under Section 174(3) of the Act.
Other Matters
This report is made solely to the members of the Company, as a body, in accordance
with Section 174 of the Companies Act, 1965 in Malaysia and for no other purpose.
We do not assume responsibility to any other person for the content of this report.
KPMG Firm Number: AF 0758
Chartered Accountants
Chong Dee Shiang
Approval Number: 2782/09/14(J)
Chartered Accountant
Petaling Jaya,
Date: 19 June 2013
193
Pos Malaysia Berhad
Annual Report 2013
Top 10 Properties
No. Type
Location
Subject Property
Registered/
Beneficial Owner
1.
Alienated Land
Shah Alam
HS(D) 98478, PT No 1 Sek 21, Bandar Shah Alam,
District of Petaling Jaya, State of Selangor
PMB Properties Sdn Bhd
2.
Alienated Land
Kompleks Dayabumi
Kuala Lumpur
HS(D) 49280, PT 46 Sek 70, Bandar Kuala Lumpur,
District of Kuala Lumpur, State of Wilayah Persekutuan Kuala Lumpur
Pesuruhjaya Tanah
Persekutuan
3.
Building
KLIA
Mukim of Sepang, District of Sepang, State of Selangor
Malaysia Airports
(Sepang) Sdn Bhd
4.
Alienated Land
Ipoh
Pajakan Negeri 155068 for Lot 2436N, Town of Ipoh, Daerah Kinta,
Perak Darul Ridzuan
Effivation Sdn Bhd
Alienated Land
Ipoh
Perak Darul Ridzuan
Effivation Sdn Bhd
Alienated Land
Ipoh
Pajakan Negeri 4738 for Lot 31448, Town of Ipoh, Daerah Kinta,
Perak Darul Ridzuan
Effivation Sdn Bhd
Alienated Land
Ipoh
Pajakan Negeri 153337 for Lot 35120, Town of Ipoh, Daerah Kinta,
Perak Darul Ridzuan
Effivation Sdn Bhd
Alienated Land
Ipoh
Perak Darul Ridzuan
Effivation Sdn Bhd
Alienated Land
Ipoh
GRN 55283 for Lot 31449, Town of Ipoh, Daerah Kinta, Perak Darul Ridzuan
Effivation Sdn Bhd
Alienated Land
Ipoh
Perak Darul Ridzuan
Effivation Sdn Bhd
Registered Land
Bukit Raja
HS(D) 56783, PT 27615, Mukim of Kapar, District of Klang,
State of Selangor
Pos Malaysia Berhad
5.
194
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Land Area
(sq mt)
Gross Floor Area
(sq mt)
Cost of Purchase/
Lease Amount
(RM)
Net Book Value
as at 31 March
2013 (RM)
Existing Use/Description
Tenure
MPC Section 21 Shah Alam/Double Storey Office
Building, 2 units of 1 1⁄2 Storey Factory Buidling
Leasehold 99 years
(expiring 19/7/2094)
90,072
46,451
69,000,000
69,225,040
General Post Office/Eight Storey Building
Leasehold 99 years
8,496
44,519
60,000,000
22,767,856
Pos Malaysia International Hub (PMIH)
Concession
36,950
18,729
34,277,932
19,890,380
Vacant Land
Leasehold 999 years
(expiring on 30/12/2893)
1,310
Not applicable
3,262,660
Vacant Land
Leasehold 999 years
1,424
Not applicable
2,804,939
Vacant Land
Leasehold 999 years
2,722
Not applicable
Vacant Land
Leasehold 999 years
2,228
Not applicable
Vacant Land
Leasehold 999 years
1,500
Not applicable
3,550,000
Vacant Land
Freehold
3,010
Not applicable
2,980,593
Vacant Land
Leasehold 999 years
1,507
Not applicable
3,739,742
Delivery Klang Utara/Warehouse with attached three
storey office
Freehold
8,809
5,617
10,300,000
4,741,831
13,100,000
12,774,044
195
Pos Malaysia Berhad
Annual Report 2013
Top 10 Properties (cont’d)
No. Type
Location
Subject Property
Registered/
Beneficial Owner
6.
Registered Land
Larkin
HS(D) 109201, PT TLO 682, Bandar Johor Bahru, District of Johor Bahru,
State of Johor
Pos Malaysia Berhad
7.
Building
Persiaran Greenhill
HS(D) 209759, PT 232308 Bandar Ipoh, District of Kinta, State of Perak
Real Riviera Sdn Bhd
8.
Registered Land
Bangi
HS(D) 52880, PT 41029, Bandar Baru Bangi, District of Hulu Langat,
State of Selangor
Pos Malaysia Berhad
Registered Land
Bangi
HS(D) 52881, PT 41030, Bandar Baru Bangi, District of Hulu Langat,
State of Selangor
Pos Malaysia Berhad
9.
Registered Land
Brickfields
Lot No. 361, PN 27419, Section 0072, Town & District of Kuala Lumpur
Pos Malaysia &
Service Holdings Berhad
10.
Building
Jalan Damansara
Unit Nos. F108, F110, F111, F112, F113, F208, F210, F211,
F212 & F213, Phileo Damansara, Jalan Damansara, Petaling Jaya,
State of Selangor
PSH Properties Sdn Bhd
196
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Land Area
(sq mt)
Gross Floor Area
(sq mt)
Cost of Purchase/
Lease Amount
(RM)
Net Book Value
as at 31 March
2013 (RM)
Existing Use/Description
Tenure
Mail Centre, Johor Bahru/a Single Storey detached
Warehouse with a double storey
Leasehold 60 years
(expiring 15/12/2021)
20,234
6,601
10,300,000
12,513,070
Office Building/7 Storey Building
Leasehold 99 years
(expiring 21/09/2894)
635
3,176
9,566,461
7,900,000
Delivery/Warehouse with attached office (2 Units)
Leasehold 99 years
6,267
2,044
2,800,000
Delivery/Warehouse with attached office (2 Units)
Leasehold 99 years
4,206
2,044
2,400,000
Poslaju Warehouse
99 years leasehold
(expiring on 20th May 2097)
10,922
3,442
53,000,000
48,244,040
Office and Commercial units
Freehold
–
1,441
7,694,005
7,160,000
5,523,327
197
Pos Malaysia Berhad
Annual Report 2013
Analysis of Shareholdings
as at 28 June 2013
Authorised Capital
:RM1,000,000,001.00 divided into 2,000,000,000 ordinary shares of RM0.50 each and 1 Special Rights Redeemable Preference Share of
RM1.00
Issued and fully paid-up capital :
RM268,513,043.50 comprising 537,026,085 ordinary shares of RM0.50 each and one (1) Special Rights Redeemable Preference Share
of RM1.00
Voting Rights
: One vote for every ordinary share, on a poll voting
(The Special Rights Redeemable Preference Share does not carry any voting right except in circumstances set out in the Company’s Articles
of Association)
No. Shareholders
: 20,027
Substantial Shareholders
As Per the Register of Substantial Shareholders
Direct
Indirect
Shareholders
No. of shares
%
No. of shares
%
1.
DRB-HICOM Berhad
172,997,399
32.21
–
–
2.
Aberdeen Asset Management PLC and its subsidiaries
69,514,200*
12.94
–
–
3.
Aberdeen Asset Management Asia Limited
57,523,000*
10.71
–
–
4.
Employees Provident Fund Board
45,041,800
8.39
–
–
5.
Aberdeen International Fund Managers Limited
40,411,700*
7.52
–
–
–
172,997,399(a)
32.21
–
172,997,399(b)
32.21
–
70,634,724(c)
13.15
6.
Tan Sri Dato’ Seri Syed Mokhtar Shah bin Syed Nor
7.
Etika Strategi Sdn Bhd
8.
Mitsubishi UFJ Financial Group, Inc
–
–
–
Notes:
*
(a)
(b)
(c)
Includes holdings of mandates delegated from other subsidiaries of Aberdeen Asset Management PLC.
Deemed interested pursuant to Section 6A of the Companies Act, 1965 by virtue of his interest in DRB-HICOM Berhad.
Deemed interested pursuant to Section 6A of the Companies Act, 1965 by virtue of its interest in DRB-HICOM Berhad.
Deemed interested in the shares by virtue of Mitsubishi UFJ Financial Group, Inc’s wholly-owned subsidiary, Mitsubishi UFJ Trust & Banking Corp holding more than 15% in Aberdeen Asset Management PLC and Mitsubishi
UFJ Financial Group, Inc holding more than 15% interest in shares of Morgan Stanley Group.
198
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Distribution of Shareholdings
Holdings
Less than 100
100 to 1,000
No. of Shares
% of Issued
Share Capital
No. of
Shareholders/
Depositors
% of
Shareholders/
Depositors
221,814
0.04
5,185
25.89
4,452,599
0.83
6,968
34.80
1,001 to 10,000
23,960,955
4.46
6,538
32.64
10,001 to 100,000
31,032,537
5.78
1,091
5.45
100,001 to 26,851,303
233,699,181
43.52
242
1.21
26,851,304 and above
243,658,999
45.38
3
0.01
Total
537,026,085
100.0
20,027
100.0
30 Largest Registered Shareholders
No. Name
1.
Maybank Nominees (Tempatan) Sdn Bhd
Pledged Securities Account for DRB-HICOM Berhad (414011604790)
2.
No. of Shares
Percentage (%)
172,997,399
32.21
HSBC Nominees (Asing) Sdn Bhd
BNP Paribas Secs Svs Lux for Aberdeen Global
40,415,100
7.53
3.
Citigroup Nominees (Tempatan) Sdn Bhd
Employees Provident Fund Board
30,246,500
5.63
4.
Amsec Nominees (Tempatan) Sdn Bhd
Amtrustee Berhad for CIMB Islamic Dali Equity Growth Fund
20,353,000
3.79
5.
Exempt AN For AIA Bhd
15,374,000
2.86
6.
Exempt AN for BNP Paribas Securities Services (Jersey GBP)
9,150,000
1.70
7.
Amanahraya Trustees Berhad
Public Islamic Select Treasures Fund
8,159,900
1.52
8.
ING Insurance Berhad
8,146,700
1.52
199
Pos Malaysia Berhad
Annual Report 2013
Analysis of Shareholdings (cont’d)
as at 28 June 2013
No. Name
No. of Shares
Percentage (%)
9.
Exempt An for Credit Suisse Securities (USA) LLC (PB Client)
7,555,700
1.41
10.
Employees Provident Fund Board (CIMB PRIN)
7,236,900
1.35
11.
Coutts & Co Ltd SG for Glenmorgan Company Inc
6,500,000
1.21
12.
BNP Paribas Secs Svs Paris for Aberdeen Asian Smaller Companies Investment Trust PLC
5,500,000
1.02
13.
Kumpulan Wang Persaraan (Diperbadankan) (Aberdeen)
5,200,000
0.97
14.
Employees Provident Fund Board (Aberdeen)
4,330,000
0.81
15.
Public Islamic Dividend Fund
3,801,500
0.71
16.
CIMB Group Nominees (Tempatan) Sdn Bhd
Amtrustee Berhad for CIMB Islamic Dali Equity Theme Fund
3,660,100
0.68
17.
Exempt An for JPMorgan Chase Bank, National Association (Bermuda)
3,591,800
0.67
18.
Kumpulan Wang Persaraan (Diperbadankan)(CIMB Equities)
3,501,000
0.65
19.
Cartaban Nominees (Tempatan) Sdn Bhd
Exempt An for Eastspring Investments Berhad
3,459,500
0.64
20.
Universal Trustee (Malaysia) Berhad for CIMB-Principal Equity Fund
2,988,300
0.56
21.
DB (Malaysia) Nominee (Asing) Sdn Bhd
SSBT Fund PS2U for Pacific Select Fund International Small-Cap Portfolio
2,917,100
0.54
22.
Citigroup Nominees (Asing) Sdn Bhd
CBNY for DFA Emerging Markets Small Cap Series
2,861,100
0.53
23.
Public Islamic Opportunities Fund
2,669,500
0.50
24.
AmanahRaya Trustees Berhad
Public Islamic Equity Fund
2,585,000
0.48
200
www.pos.com.my
No. Name
No. of Shares
Percentage (%)
25.
Citigroup Nominees (Asing) Sdn Bhd
CBNY for Dimensional Emerging Markets Value Fund
2,578,117
0.48
26.
BNP Paribas Secs Svs Paris for HI-KABL-FONDS
2,540,000
0.47
27.
Allianz Life Insurance Malaysia Berhad
2,490,000
0.46
28.
Exempt An For JPMorgan Chase Bank, National Association (U.S.A)
2,010,400
0.37
29.
HSBC Nominees (Tempatan) Sdn Bhd
HSBC (M) Trustee Bhd for AMB Value Trust Fund (4249)
1,880,000
0.35
30.
Amanah Raya Berhad
Kumpulan Wang Bersama Syariah
1,665,000
0.31
386,363,616
71.95
Total
Directors’ Shareholdings
As Per the Register of Directors’ Shareholdings
No. of shares
Name of Directors
No. of shares
Direct Interest
%
Indirect Interest
%
57
+
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Datuk Puteh Rukiah binti Abd Majid
–
–
–
–
–
–
–
–
Notes:
+
Negligible
201
Pos Malaysia Berhad
Annual Report 2013
Notice of 21st Annual General Meeting
NOTICE IS HEREBY GIVEN THAT the 21st Annual General Meeting (“AGM”) of Pos Malaysia Berhad (“Pos Malaysia” or “the
Company”) will be held at Citrine and Ruby Ballroom, One World Hotel, Ground Floor, First Avenue, Bandar Utama City Centre,
47800 Petaling Jaya, Selangor on Thursday, 5 September 2013 at 9.00 a.m. for the following purposes:
As Ordinary Business:
1.
To receive the Audited Financial Statements for the financial year ended 31 March 2013 and the Reports of the Directors and Auditors thereon.
Please refer to Note A
2.
To declare a final dividend of 9.5 sen per ordinary share less 25% income tax in respect of the financial year ended 31 March 2013.
(Ordinary Resolution 1)
3.
To re-elect Dato’ Ibrahim Mahaludin bin Puteh as Director who retire by rotation pursuant to Article 115 of the Company’s Articles of Association,
and who being eligible, offered himself for re-election.
Please refer to Note B
4.
To re-elect the following Directors who retire pursuant to Article 110(2) of the Company’s Articles of Association, and who being eligible, offered
themselves for re-election:
(a)
(b)
(c)
(d)
5.
Encik Abdul Hamid bin Sh Mohamed
To re-appoint Messrs KPMG as Auditors of the Company for the ensuing year and to authorise the Directors to fix their remuneration.
Please refer to Note B
As Special Business:
To consider and, if thought fit, to pass the following resolutions:
6.
ORDINARY RESOLUTION:
Proposed payment of Directors’ fees in respect of the financial year ended 31 March 2013
“THAT the payment of the Directors’ Fees of RM733,465.75 in respect of the financial year ended 31 March 2013 be hereby approved.”
202
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7.
ORDINARY RESOLUTION:
Proposed Renewal of Shareholders’ Mandate for Mandated Recurrent Related Party Transactions of a Revenue or Trading Nature (“Proposed
Renewal of Shareholders’ Mandate”)
“THAT subject to the Companies Act, 1965 (“the Act”), the Memorandum and Articles of Association of the Company and the Main Market
Listing Requirements (“the Listing Requirements”) of Bursa Malaysia Securities Berhad (“Bursa Securities“), the mandate for the Company and
its subsidiaries (“Pos Malaysia Group”) to enter into any of the mandated recurrent related party transactions of a revenue or trading nature as
set out in Section 2.2.3 of the Company’s Circular to Shareholders dated 5 August 2013 with the related transacting parties mentioned therein
which are necessary for the Pos Malaysia Group’s day-to-day operations, be hereby renewed subject to the following:
(a) the transactions are in the ordinary course of business and are on terms not more favourable to the related parties than those generally
available to the public and are not to the detriment of the minority shareholders of the Company; and
(b) the shareholders’ mandate is subject to annual renewal and disclosure is made in the annual report of the Company of the aggregate value
of transactions conducted pursuant to the shareholders’ mandate during the financial year.
AND THAT the Proposed Renewal of Shareholders’ Mandate will be subject to annual renewal and any authority conferred by the Proposed
Renewal of Shareholders’ Mandate, shall continue to be in force until:
(a) the conclusion of the next AGM of the Company, at which time it will lapse, unless by a resolution passed at the meeting, the authority is
renewed; or
(b) the expiration of the period within which the next AGM of the Company is required to be held pursuant to Section 143(1) of the Act (but
shall not extend to such extension as may be allowed pursuant to Section 143(2) of the Act); or
(c) revoked or varied by resolution passed by the shareholders in general meeting;
whichever is earlier;
AND THAT the Directors of the Company and/or any of them be and are hereby authorised to complete and do all such acts and things (including
executing such documents as may be required) to give effect to the transactions contemplated and/or authorised by this resolution and with full
power to assent to any conditions, modifications, revaluations, variations and/or amendments thereof in the best interest of the Company.”
203
Pos Malaysia Berhad
Annual Report 2013
Notice of 21st Annual General Meeting (cont’d)
8.
ORDINARY RESOLUTION
Proposed New Shareholders’ Mandate for New Recurrent Related Party Transactions of a Revenue or Trading Nature (“Proposed New Shareholders’
Mandate”)
“THAT subject to the Companies Act, 1965 (“the Act”), the Memorandum and Articles of Association of the Company and the Main Market
Listing Requirements (“the Listing Requirements”) of Bursa Malaysia Securities Berhad (“Bursa Securities”), approval be and is hereby given to
the Company and its subsidiaries (“Pos Malaysia Group”) to enter into any of the new recurrent related party transactions of a revenue or trading
nature as set out in Section 2.2.3 of the Company’s Circular to Shareholders dated 5 August 2013 with the related transacting parties mentioned
therein which are necessary for the Pos Malaysia Group’s day-to-day operations subject to the following:
(a) the transactions are in the ordinary course of business and are on terms not more favourable to the related parties than those generally
available to the public and are not to the detriment of the minority shareholders of the Company; and
(b) the shareholders’ mandate is subject to annual renewal and disclosure is made in the annual report of the Company of the aggregate value
of transactions conducted pursuant to the shareholders’ mandate during the financial year.
AND THAT the Proposed New Shareholders’ Mandate will be subject to annual renewal and any authority conferred by the Proposed New
Shareholders’ Mandate, shall continue to be in force until:
(a) the conclusion of the next AGM of the Company, at which time it will lapse, unless by a resolution passed at the meeting, the authority is
renewed; or
(b) the expiration of the period within which the next AGM of the Company is required to be held pursuant to Section 143(1) of the Act (but
shall not extend to such extension as may be allowed pursuant to Section 143(2) of the Act); or
(c) revoked or varied by resolution passed by the shareholders in general meeting;
whichever is earlier;
AND THAT the Directors of the Company and/or any of them be and are hereby authorised to complete and do all such acts and things (including
executing such documents as may be required) to give effect to the transactions contemplated and/or authorised by this resolution and with full
power to assent to any conditions, modifications, revaluations, variations and/or amendments thereof in the best interest of the Company.”
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9.
To transact any other business of which due notice has been given in accordance with the Act and the Company’s Articles of Association.
FURTHER NOTICE IS HEREBY GIVEN THAT for the purpose of determining a member who shall be entitled to attend this 21st AGM, the Company
shall be requesting Bursa Malaysia Depository Sdn Bhd, in accordance with Article 89(3) of the Company’s Articles of Association and Section 34(1)
of the Securities Industry (Central Depositories) Act 1991, to issue a General Meeting Record of Depositors as at 30 August 2013. Only Depositor
whose name appears on the Record of Depositors as at 30 August 2013 shall be entitled to attend the said meeting or appoint proxies to attend
and/or vote on his/her behalf.
Notice of Book Closure and Notice of Dividend Entitlement and Payment:
NOTICE IS ALSO HEREBY GIVEN THAT the final dividend of 9.5 sen per ordinary share less 25% income tax in respect of the financial year ended
31 March 2013, if approved by the shareholders at the 21st AGM, will be paid on 7 October 2013 to shareholders whose names appear in the
Register of Members or Record of Depositors at the close of business on 13 September 2013.
A Depositor shall qualify for entitlement to the dividend only in respect of:
(a) shares deposited into the Depositor’s securities account before 12.30 p.m. on 11 September 2013 in respect of securities which are exempted
from mandatory deposit;
(b) shares transferred into the Depositor’s securities account before 4.00 p.m. on 13 September 2013 in respect of ordinary transfers; and
(c) shares bought on Bursa Malaysia Securities Berhad on a cum entitlement basis according to the Rules of Bursa Malaysia Securities Berhad.
By Order of the Board,
Dato’ Sabrina Albakri binti Abu Bakar (LS8508)
Company Secretary
Kuala Lumpur
5 August 2013
205
Pos Malaysia Berhad
Annual Report 2013
Notice of 21st Annual General Meeting (cont’d)
Notes:
Note A:
This agenda item is meant for discussion only as the provision of Section 169(1) of the Act does not require a formal approval of the shareholders and hence is not put forward
for voting.
Note B:
Dato’ Ibrahim Mahaludin bin Puteh, Dato’ Sri Che Khalib bin Mohamad Noh, Datuk Mohamed Razeek bin Md Hussain Maricar, Datuk Puteh Rukiah binti Abd. Majid and Encik
Abdul Hamid bin Sh Mohamed are seeking for re-election as Directors of the Company. The Board Nomination and Remuneration Committee (“BNRC”) has considered the
assessment of the said Directors and the Board of Directors (“Board”) collectively agree that they meet the criteria of character, experience, integrity, competence and time to
effectively discharge their respective roles as Directors as prescribed by Paragraph 2.20A of the Main Market Listing Requirements (“Listing Requirements”) of Bursa Malaysia
Securities Berhad (“Bursa Securities”).
In line with Recommendation 3.1 of the Malaysian Code on Corporate Governance 2012, the BNRC has considered the assessment and the Board has affirmed the independence
of the Independent Directors who are seeking for re-election, namely Dato’ Ibrahim Mahaludin bin Puteh, Dato’ Sri Che Khalib bin Mohamad Noh, Datuk Puteh Rukiah binti
Abd. Majid and Encik Abdul Hamid bin Sh Mohamed, and is satisfied that the incumbents have complied with the independence criteria as prescribed in the Listing Requirements
of Bursa Securities.
Explanatory Notes on Special Business:
(1) The proposed Ordinary Resolution 8 if passed, will authorise the payment of Directors’ Fees to Directors of the Company for their services during the financial year ended
31 March 2013. At the last AGM of the Company, the shareholders had approved an increase in Directors’ Fees for the Non-Executive Directors as proposed then. The
amount of Directors’ Fees payable to the Directors, which approval is sought at the forthcoming AGM reflect the increased Directors’ Fees as approved last year.
(2) The proposed Ordinary Resolutions 9 and 10 if passed, will renew the existing mandate and grant new mandate to the Pos Malaysia Group to enable the Pos Malaysia Group
to enter into the mandated and new recurrent related party transactions of a revenue or trading nature which are necessary for the Pos Malaysia Group’s day to day operations,
subject to the transactions being in the ordinary course of business and on normal commercial terms which are not more favourable to the related parties than those generally
available to the public and are not to the detriment of the minority shareholders of the Company. The details are as set out in the Circular to Shareholders dated 5 August
2013.
206
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Notes on Proxy:
1. A member entitled to attend and vote is entitled to appoint a proxy to attend and vote in his/her stead. A proxy need not be a member of the Company and the provisions
of Section 149(1)(b) of the Act shall not apply.
2. A member may appoint a maximum of two (2) proxies to attend the meeting provided that such member holds not less than the minimum board lot as specified under the
Rules of Bursa Malaysia Depository Sdn Bhd and the Listing Requirements of Bursa Securities. Where a member appoints two (2) proxies to attend the meeting, the member
shall specify the proportion of his/her shareholding to be represented by each proxy.
3. Pursuant to the Listing Requirements of Bursa Securities, where a member of the Company is an exempt authorised nominee, as defined under the Securities Industry
(Central Depositories) Act, 1991 (“Central Depositories Act”), which is exempted from compliance with the provisions of Section 25A(1) of the Central Depositories Act, of
which holds ordinary shares in the Company for multiple beneficial owners in one securities account (“omnibus account”), there is no limit to the number of proxies which
the exempt authorised nominee may appoint in respect of each omnibus account it holds.
4. The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney duly appointed under a power of attorney or if such appointor is
a corporation, either under the corporation’s seal or under the hand of an officer or attorney duly appointed under a power of attorney.
5. The instrument appointing a proxy or representative shall be deposited at the Company’s Share Registrar’s office at Symphony Share Registrars Sdn Bhd, Level 6, Symphony
House, Block D13, Pusat Dagangan Dana 1, Jalan PJU 1A/46, 47301 Petaling Jaya, Selangor Darul Ehsan not less than forty-eight (48) hours before the time set for
holding the meeting or any adjournment thereof.
Statement Accompanying the Notice of Annual General Meeting
No notice in writing has been received by the Company nominating any candidate for election as Director at the 21st AGM of the Company. The Directors who are due for
retirement and seeking for re-election pursuant to the Articles of Association of the Company are as set out in the Notice of AGM.
207
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Proxy Form 21st Annual General Meeting
CDS Account No.
POS MALAYSIA BERHAD (229990-M)
I/We,
Total Number of Shares Held
Contact number
NRIC/Passport/Company No.:
(FULL NAME OF SHAREHOLDER AS PER NRIC/PASSPORT IN BLOCK LETTERS)
Address:
being a member of Pos Malaysia Berhad (229990-M), hereby appoint the following:
(1) PROXY “A”:
NRIC/Passport:
(FULL NAME OF PROXY “A” AS PER NRIC/PASSPORT IN BLOCK LETTERS)
Address
or failing him/her
NRIC/Passport:
(FULL NAME AS PER NRIC/PASSPORT IN BLOCK LETTERS)
Address
(2) PROXY “B” (if Applicable):
NRIC/Passport:
(FULL NAME OF PROXY “B” AS PER NRIC/PASSPORT IN BLOCK LETTERS)
Address
or failing him/her
NRIC/Passport:
(FULL NAME AS PER NRIC/PASSPORT IN BLOCK LETTERS)
Address
OR
the CHAIRMAN OF THE MEETING (if no proxy is named above);
as my/our proxy to vote for me/us and on my/our behalf, at the 21st Annual General Meeting of the Company, to be held at Citrine and Ruby Ballroom, One World Hotel, Ground Floor, First Avenue,
Bandar Utama City Centre, 47800 Petaling Jaya, Selangor on Thursday, 5 September 2013 at 9.00 a.m. and at any adjournment thereof. My/our proxy is to vote as indicated below:
The proportion of my/our holding to be represented by my/our proxies are as follows:
Proxy A
No.
%
Proxy B
%
Total
100
Ordinary Resolution
For
1.
Declaration of Dividend.
2.
Re-election of Dato’ Ibrahim Mahaludin bin Puteh as Director.
3.
Re-election of Dato’ Sri Che Khalib bin Mohamad Noh as Director.
4.
Re-election of Encik Abdul Hamid bin Sh. Mohamed as Director.
5.
Re-election of Datuk Mohamed Razeek bin Md Hussain Maricar as Director.
6.
Re-election of Datuk Puteh Rukiah binti Abd. Majid as Director.
7.
Re-appointment of Messrs KPMG as the Company’s Auditors for the ensuing year.
8.
Approval of Directors’ Fees.
9.
Proposed Renewal of Shareholders’ Mandate for Mandated Recurrent Related Party Transactions of a Revenue or Trading Nature.
10.
%
Against
Proposed New Shareholders’ Mandate for New Recurrent Related Party Transactions of a Revenue or Trading Nature.
Please indicate with an (“X”) in the appropriate spaces as to how you wish your votes to be cast on the Ordinary Resolutions specified in the Notice of the 21st Annual General Meeting. If you do not do so, the Proxy may vote or abstain from voting at his/her discretion.
Signed this
day of
2013
Signature(s)/Common Seal of Shareholder(s)
Notes:
1.
A member entitled to attend and vote is entitled to appoint a proxy to attend and vote in his/her stead.
A proxy need not be a member of the Company and the provisions of Section 149(1)(b) of the Act shall
not apply.
4.
The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney
duly appointed under a power of attorney or if such appointor is a corporation, either under the
corporation’s seal or under the hand of an officer or attorney duly appointed under a power of attorney.
2.
A member may appoint a maximum of two (2) proxies to attend the meeting provided that such member
holds not less than the minimum board lot as specified under the Rules of Bursa Malaysia Depository
Sdn Bhd and the Listing Requirements. Where a member appoints two (2) proxies to attend the meeting,
the member shall specify the proportion of his/her shareholding to be represented by each proxy.
5.
The instrument appointing a proxy or representative shall be deposited at the Company’s Share Registrar’s
office at Symphony Share Registrars Sdn Bhd, Level 6, Symphony House, Block D13, Pusat Dagangan
Dana 1, Jalan PJU 1A/46, 47301 Petaling Jaya, Selangor Darul Ehsan not less than forty-eight (48) hours
before the time set for holding the meeting or any adjournment thereof.
3.
Pursuant to the Listing Requirements, a member of the Company which is an exempt authorised nominee,
as defined under the Securities Industry (Central Depositories) Act, 1991 (“Central Depositories Act”),
which is exempted from compliance with the provisions of Section 25A(1) of the Central Depositories Act,
of which holds ordinary shares in the Company for multiple beneficial owners in one securities account
(“omnibus account”), there is no limit to the number of proxies which the exempt authorised nominee
may appoint in respect of each omnibus account it holds.
Complete this form where applicable, place in envelope and post to:
PLEASE FOLD HERE
AFFIX
STAMP
The Share Registrar
SYMPHONY SHARE REGISTRARS SDN BHD (378993-D)
Level 6, Symphony House, Block D13
Pusat Dagangan Dana 1
Jalan PJU 1A/46
47301 Petaling Jaya
PLEASE FOLD HERE
Pos Malaysia Berhad
(229990-M)
(229990-M)
1 300 300 300
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Pos Malaysia 2013 Annual Report - International Post Corporation

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